AD Banker Comprehensive Practice Exam

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Enhance your exam readiness with the AD Banker Comprehensive Exam guide. Includes flashcards and multiple-choice questions with explanations.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What typically happens to a policyowner after disability under a waiver of premium rider?

Must repay the premiums paid by the company during disability
Must reapply for the insurance
Must prove insurability to continue the policy on an annual basis
Need not repay the premiums paid by the company during disability

The correct answer is: Need not repay the premiums paid by the company during disability

In the context of a waiver of premium rider, once a policyowner becomes disabled and qualifies for this benefit, they do not have any obligation to repay the premiums that the insurance company covers during their disability period. This rider is designed to provide financial relief, allowing the policyowner to maintain their life insurance coverage without needing to make premium payments while they are unable to work due to their disability. The waiver of premium rider ensures that the policy remains in force during the period of disability, thus protecting the policyholder's interests without the added burden of having to pay premiums when they may be facing significant financial challenges due to their inability to earn income. The rider effectively allows the policyholder to focus on recovery without worrying about the status of their life insurance.