LLQP - Life License Qualification Program Policy Provisions and Riders Questions and Answers

Question 1

An insured individual commits suicide 2.5 years after their life insurance policy's effective date.
Which policy provision will most likely determine whether the death benefit is paid to the beneficiary?

Accepted Answer

Suicide Clause

Answer

Grace Period Clause

Answer

Incontestability Clause

Answer

Reinstatement Clause

Question 2

Joanne purchased a life insurance policy and, due to a temporary job loss, missed a premium payment. Her policy includes a standard provision that prevents the policy from immediately lapsing. If she dies during this period, the death benefit will still be paid, less the overdue premium. What is this provision called?

Accepted Answer

Grace Period Provision

Answer

Reinstatement Provision

Answer

Nonforfeiture Option

Answer

Automatic Premium Loan

Question 3

Which of the following riders would allow a policyowner to purchase additional life insurance coverage at specified future dates or life events without needing to provide evidence of insurability?

Accepted Answer

Guaranteed Insurability Rider

Answer

Waiver of Premium Rider

Answer

Accidental Death Benefit Rider

Answer

Critical Illness Rider

Question 4

Frank took out a life insurance policy but failed to mention a significant heart condition on his application. He passes away from a car accident 18 months after the policy is issued. The insurance company investigates and discovers the misrepresentation. What is the most likely outcome?

Accepted Answer

The claim will be denied, and the premiums paid will be refunded to the beneficiary.

Answer

The death benefit will be paid in full because the cause of death was unrelated to the misrepresentation.

Answer

The death benefit will be paid, but reduced by the amount of premium Frank would have paid if the condition was disclosed.

Answer

The claim will be denied, and the insurer will retain all premiums paid.

Question 5

A policyowner adds a rider to her life insurance policy that will pay for the premiums if she becomes totally disabled and unable to work. This feature ensures her life insurance coverage continues despite her inability to pay. What is this rider called?

Accepted Answer

Waiver of Premium Rider

Answer

Payor Benefit Rider

Answer

Disability Income Rider

Answer

Accelerated Death Benefit Rider

Question 6

Which of the following provisions gives a policyholder the right to restore a lapsed policy to its active status, typically by paying back premiums plus interest and providing evidence of insurability?

Accepted Answer

Reinstatement Clause

Answer

Incontestability Clause

Answer

Grace Period

Answer

Free Look Provision