1. Twenty years after the policy was issued, Chad felt that the premium payments are financially burdensome. He wants to only reduce his annual premium outlay (at least temporarily), but he wants to keep the policy limit as is, as well as the duration of insurance coverage. Which one of the following dividend options fit Chads objective? Circle one.

Paid-up Addition. b) Dividend Accumulation. c) Premium payment.

2. Chad wants to make sure that when he dies, his mother will receive guaranteed income for 20 years. Which one of the options of payment of policy proceeds fits his objective? Circle one.

Life income option. b) Fixed amount option. c) Fixed period option.

3. Ten years after the policy was issued, Chad wants to buy a house. He doesnt have enough money to pay for the down payment but he doesnt want to surrender his policy. What advice can you give to Chad on how to get the money?

4. Chad wants to retire and does not want to pay premiums anymore on his policy. He does not want to surrender the policy and still wants to be covered for the rest of his life. Which nonforfeiture option fits Chads objective? Circle one.

Extended Insurance. b) Paid-up Insurance. c) Surrender for Cash.

5. After paying premiums for 24 years, Chad forgot to pay his 25^th year annual premium due on January 1. He died 3 months later.

Will the insurer pay? Circle one: Yes (go to part b) No (go to part c)

If yes, cite the relevant provision and explain why.

If no, cite the relevant provision and explain why not.

6. Three years after the issuance of the policy, Chad was told he had lung cancer. He is uninsurable but he wants to obtain additional $10,000 life insurance coverage.

Can he do that? Circle one: Yes (go to part b) No (go to part c)

If yes, cite the relevant provision and explain why.

If not, cite the relevant provision and explain why not.