Massachusetts Health & Accident Insurance Practice Exam

What does the Payor Provision Rider provide?

1. waives premiums if the policyholder dies

2. doubles the face amount of life insurance

3. waives premiums if the premium-payor dies or becomes totally disabled

4. secures additional coverage without evidence of insurability

The correct answer is: waives premiums if the premium-payor dies or becomes totally disabled

The Payor Provision Rider is designed to protect the insurance policy from lapsing due to the premium-payer's inability to pay, typically due to death or total disability. This rider specifically allows for the waiving of premium payments if the individual responsible for paying the premiums (often a guardian or parent in the case of a dependents' policy) passes away or becomes totally disabled. This feature ensures that the coverage remains in force for the insured individual, which is especially important for policies covering minors or individuals who may not have an independent source of income. The other options provided do not accurately describe the primary function of the Payor Provision Rider. For instance, waiving premiums solely due to the policyholder's death would not cover situations where the premium-payer is disabled but still alive. Doubling the face amount of life insurance and providing additional coverage without evidence of insurability are functionalities that pertain to different types of riders or insurance provisions, and thus do not align with the specific purpose of the Payor Provision Rider.