WY Life and Health Insurance EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Elimination Period - Correct Answers✅time immediately following the start of a disability when benefits aren't payable Owner's Rights - Correct Answers ✅Explains policy owner's right to change beneficiaries, choose options, and settlement options Settlement Option - Correct Answers ✅The mode chosen in which the beneficiary will receive death benefits Interest Only Settlement Option - Correct Answers ✅Company retains policy proceeds and pays interest on proceeds to recipient at regular intervals Insuring Clause - Correct Answers ✅insurer agrees to provide life insurance for insured which will be paid to designated beneficiary when proof of loss in received Contains company's promise to pay Reinstatement - Correct Answers ✅Limited to 3 yrs after lapse Provide evidence of insurability Pay back all premiums plus interest and outstanding loans plus interest 1 / 4
WY Life and Health Insurance EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Restored to original status & retains all values established at insureds issued age Can't be reinstated in surrendered Incontestability - Correct Answers ✅prevents insurer from denying a claim due to statements in application if policy has been in force for 2 years Waiver of Premium disability rider - Correct Answers ✅Waives premium if insured becomes totally disabled
- mo. waiting period
expires when insured reaches age 65 Waiver of Monthly Deduction disability rider - Correct Answers ✅Pays all monthly deductions while insured is disabled after 6 mo. waiting period length of rider depends on age when insured becomes disabled Payor Benefit Disability Rider - Correct Answers ✅If payor becomes disabled or dies, insurer will waive premiums until minor beneficiary reaches certain age (18-21) Accidental Death and Dismemberment - Correct Answers ✅Double/triple indemnity 2 / 4
WY Life and Health Insurance EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Death must occur within 90 days of accident
Principal Sum: for death of complete dismemberment
Capital Sum: for dismemberment (usually half of face value)
Guaranteed Insurability - Correct Answers ✅Allows insured to purchase additional coverage at future dates (usually every 3 yrs) or events w/o evidence of insurability for additional premium usually expires at age 40 Return of Premium - Correct Answers ✅Implemented using increasing term insurance Face amount & all premiums payable to beneficiary expires at specified age (60) Term Riders - Correct Answers ✅Allow for an additional amount of temporary insurance to be provided on the insured without need to issue another policy usually attached to a whole life policy Living Needs - Correct Answers ✅Payment of part of death benefit if insured is diagnosed with a terminal illness that'll result in death within 2 years 3 / 4
WY Life and Health Insurance EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
Nonforfeiture option: cash surrender - Correct Answers
✅Cash value surrendered when coverage is no longer needed or affordable If cash value exceeds premiums paid, excess is taxable as ordinary income Can't be reinstated
Nonforfeiture option: Reduced Paid-Up - Correct Answers
✅Policy cash value is used as a single premium to purchase a completely paid-up permanent policy that has a reduced face amount builds own cash value and remains in force until death or maturity nonforfeiture option that provides coverage for longest period of time
Nonforfeiture option: Extended Term - Correct Answers
✅Uses cash value to convert term insurance for same face amount Coverage lasts as long as cash value will purchase automatically implemented if no other option is chosen Dividends - Correct Answers ✅Excess premiums so they're not taxable Not guaranteed
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