Marcus is concerned that inflation will erode the purchasing ...

[jho37]

Marcus is concerned that inflation will erode the purchasing power of the face value of his life insurance policy.
 
  His agent suggested that Marcus add a provision that allows him to purchase one-year term insurance equal to the percentage change in the consumer price index without having to demonstrate insurability. This provision is called a(n)
  A) cost-of-living rider.
  B) guaranteed purchase option.
  C) accelerated death benefit rider.
  D) waiver-of-premium rider.

Question 2

Which statement about the incontestable clause is true?
 
  I. It protects the beneficiary if the insurer tries to deny a claim years after the policy is issued.
  II. If protects the insurer from having to pay a claim during the first two years if the insured made a material misrepresentation or concealed material information in the application.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

[alexanderhamilton]

Answer to Question 1

Answer: A

Answer to Question 2

Answer: C

[jho37]

TY

[alexanderhamilton]

Happy to Help