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Life and Health Insurance Producer Exam

Riders: practice questions

Our Life & Health Insurance bank has 8 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

What does a return of premium rider do?

  1. Pays the premiums if the owner is disabled
  2. Returns all premiums paid if the insured dies during the first policy year
  3. Returns premiums paid if the insured outlives a term policy
  4. Reduces premiums if no claims are made
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C. Returns premiums paid if the insured outlives a term policy — It increases the cost of the policy.

Question 2

What does a cost of living rider do?

  1. Pays the insured's monthly living expenses when sick
  2. Increases the coverage automatically to keep up with inflation
  3. Reduces the premium automatically whenever the national cost of living goes down
  4. Adds the spouse to the policy at no extra charge
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B. Increases the coverage automatically to keep up with inflation — Increases are often tied to the CPI.

Question 3

What does an accidental death benefit rider pay?

  1. A benefit if the insured is injured but survives
  2. A monthly income while the insured recovers from an accident at home or work
  3. A refund of premiums if no accident occurs
  4. An additional benefit if death results from an accident
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D. An additional benefit if death results from an accident — Double indemnity pays twice the face amount.

Question 4

What does a guaranteed insurability rider allow?

  1. Lowering the premium if the insured's health improves
  2. Buying additional coverage at set times without proof of insurability
  3. Receiving part of the death benefit early on the diagnosis of a terminal illness
  4. Converting the policy to a health insurance contract
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B. Buying additional coverage at set times without proof of insurability — Option dates often include marriage and the birth of a child.

Question 5

What does an accelerated death benefit rider provide?

  1. A refund of premiums if the insured lives to age 100
  2. Early payment of part of the death benefit if the insured is terminally ill
  3. A larger death benefit if the insured dies in an accident while travelling abroad
  4. Coverage for the insured's children until they are 25
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B. Early payment of part of the death benefit if the insured is terminally ill — The amount paid early is deducted from the death benefit.

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