21

Question 1

Retains all values established at insureds issue age

Answer 1

Advantage of reinstatement provision

Question 2

Maximum time limit for reinstatement

Answer 2

Three years

Question 3

Pay back premiums plus interest maybe outstanding loans and interest

Answer 3

Reinstated

Question 4

Surrendered policies cannot be

Answer 4

Reinstated

Question 5

Clause that prevents ins co from denying payment of claim after specified period of time

Answer 5

Incontestability clause

Question 6

If wish to contest app statements

Answer 6

Two years to do so

Question 7

Incontestability does not apply

Answer 7

Nonpayment
Sex statement
Age or identity

Question 8

Misstatement of age will be

Answer 8

Resulting in adjustment of premiums or benefits

Question 9

Only found in policies with cash value

Answer 9

Policy loan

Question 10

To allow policy loans policy must have

Answer 10

Cash value

Question 11

Insurer must provide to policyowner that policy is going to lapse how many days

Answer 11

30

Question 12

Entitled to borrow amount equal to available cash value

Answer 12

Policy loan

Question 13

Loan that prevents unintentional lapse of policy due to nonpayment of prem

Answer 13

Automatic premium loans

Question 14

If continually use automatic premium loan option to pay premium

Answer 14

Policy will terminate when cash value is reduced to nothing

Question 15

Auto premium loan provision and dies before loan is paid back

Answer 15

Balance taken out of death benefit

Question 16

Died by suicide one year after policy issued

Answer 16

Premiums refunded

Question 17

Higher premium for these hobbies

Answer 17

Hazardous occupations or hobbies

Question 18

Excludes all causes of death while insured is on active duty

Answer 18

Status clause

Question 19

Only excludes death benefit if insured is killed as result of act of war

Answer 19

Results clause

Question 20

Modifications attached to policy/sometimes require additional premium but help tailor policy to specific needs/classified according to primary purpose

Answer 20

Riders

Question 21

Provide benefits in event of insured’s disability
Others provide partial payment of death benefit prior to death called accelerated or living benefits

Answer 21

Disability riders

Question 22

Insured totally disabled/remains in force until able to return to work/if never can return premiums continue to be waived by co

Answer 22

Waiver of premium rider

Question 23

Waiting period of waiver of premium rider

Answer 23

6 months from time of disability until first prem is waived

Question 24

If still disabled after waiting period

Answer 24

Will be refunded premium paid from start of disability usually expires at age 65