Question 2006 of 287 · Texas Life, Accident and Health Agent Exam

A cost-of-living rider on a life insurance policy provides

Exactly one answer is correct.

Aautomatic reduction of the premium whenever the price index drops below a set level, unless the applicant requests otherwise in writing
Bthe right to borrow against the policy at a rate that tracks the cost of living
Cmonthly income benefits that rise each year while the insured is disabled
Dincreases in the face amount tied to a consumer price index, without evidence of insurability

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Correct answer to question 2006

D: increases in the face amount tied to a consumer price index, without evidence of insurability

Explanation

The rider increases coverage periodically to offset inflation, usually with premium increases for the added amount. Evidence of insurability is generally not required.

2007An 'other insureds' rider is used to
2008A long-term care rider on a life policy allows the owner to
2009The entire contract provision of a life policy states that the
2010The free look provision gives the policyowner
2011The grace period in a life policy allows
2012The automatic premium loan provision

A cost-of-living rider on a life insurance policy provides

Correct answer to question 2006

Explanation

More questions: Life: Riders, Provisions, Options and Exclusions