Which of these is NOT a characteristic of the Accelerated Death Benefit option?

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Which of these is NOT a characteristic of the Accelerated Death Benefit option?

a) The face amount and policy premium are not affected by the payment
b) Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness
c) There may be a dollar limit on the maximum benefit
d) The benefit can be offered as a rider at a specific extra cost or may be at no cost

Answer: d) The benefit can be offered as a rider at a specific extra cost or may be at no cost

WA Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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