Which of the following is NOT a recognized nonforfeiture provision in life insurance?

The correct choice highlights a key concept of nonforfeiture provisions in life insurance. Nonforfeiture provisions are options built into a life insurance policy that allow the policyholder to receive some benefit or value from the policy without having to continue making premium payments if they decide to stop paying them.

Automatic premium loan is actually a benefit that helps to prevent the policy from lapsing by automatically borrowing from the policy's cash value to pay any overdue premiums. It is not classified as a nonforfeiture option since it does not offer a way to access value from the policy without forfeiting it.

The other options—extended term insurance, cash surrender value, and reduced paid-up insurance—are all recognized nonforfeiture options. Extended term insurance allows the policyholder to use the cash value of the policy to provide term insurance for a specified period. Cash surrender value enables the owner to cash in the policy for its accumulated cash value. Reduced paid-up insurance allows the policyholder to stop paying premiums while still keeping a reduced amount of insurance coverage. These options clearly align with the concept of nonforfeiture provisions as they provide alternatives upon discontinuation of premium payments. This understanding is essential for anyone preparing for a career as a life insurance producer.