3.Snapshots.Life Policy Provisions, Options & Flashcards
1
Q
- What constitutes the entire contract?
A
provision stipulates that the policy and a copy of the application, along with
any riders or amendments, constitute the entire contract
2
Q
- What is the free-look period, and when does it begin?
A
The free-look period starts when
the policyowner receives the policy (policy delivery)
3
Q
- What is the difference between absolute and collateral assignment?
A
- Absolute Assignment — involves transferring all rights of ownership to another person or
entity. This is a permanent and total transfer of all the policy rights. The new policyowner
does not need to have an insurable interest in the insured. - Collateral Assignment — involves a transfer of partial rights to another person. It is
usually done in order to secure a loan or some other transaction. A collateral assignment is a
partial and temporary assignment of some of the policy rights. Once the debt or loan is
repaid, the assigned rights are returned to the policyowner.
4
Q
- What is the purpose of a grace period?
A
period of time after the premium due date that the policyowner has to pay the
premium before the policy lapses (usually 30 or 31 days, or one month)
5
Q
- What is the difference between a revocable and irrevocable beneficiary?
A
6
Q
- What happens to an unpaid policy loan at insured’s death?
A
7
Q
- What is the purpose of the Automatic Premium Loan provision?
A
8
Q
- Which riders increase the amount of the death benefit?
A
9
Q
- Which rider allows the early payment of a portion of the death benefit to the insured?
A
10
Q
- What are the 3 nonforfeiture options in life insurance policies?
A
11
Q
- Which nonforfeiture option is automatically selected if the policyowner has not made a
selection?
A
12
Q
- Which dividend option increases the death benefit?
A
13
Q
- What settlement options are available in life insurance policies?
A
