Premium Rider

Fred has purchased a health policy with a waiver of premium rider. When can Fred expect to receive benefits from this rider?

 This is a promotion and the insurance company will waive the first three month's premiums as an inducement to buy now.

 If Fred does not file claims within the first five years of the policy, he will not have to pay premiums for six months.

 If Fred becomes totally and permanently disabled, the insurance will waive all premiums during the period of disability.

 At age 65, Fred will receive a check if premiums paid exceed the claims paid over the same period of time.

Correct

If Fred becomes totally and permanently disabled, the insurance company will waive all premiums during the period of disability.

A company may use a rider or an endorsement to do any of the following EXCEPT:

 Add benefits

 Change the insuring clause

 Increase premiums

 Restrict benefits

Correct

An insurance company may not use a rider or endorsement to change the insuring clause. The insuring clause contains the insurer's basic promise to pay a sum of money in the event of a covered loss to the beneficiary.