Q1. A North Dakota applicant is considering a 20-year level term life insurance policy with a waiver of premium rider. The applicant wants to know how the waiver of premium rider functions if they become totally disabled during the policy term. According to North Dakota insurance rules and common policy provisions, which statement best describes the rider's effect?

• ○If the insured becomes totally disabled, premiums are waived during the disability period, and the policy remains in force without lapse until the end of the 20-year term.
• ○The waiver of premium rider extends the policy term by the length of the disability period, increasing the total coverage duration beyond 20 years.
• ○Premiums are waived only after the insured has been disabled for 12 consecutive months, and the policy is extended indefinitely as long as the disability continues.
• ○The waiver of premium rider refunds all premiums paid prior to the disability if the insured becomes totally disabled within the first 5 years of the policy.