Chap 9 Pt 2 Flashcards
Method considers time value of money by applying an interest adjustment to yearly premiums and dividends
Interest adjusted net cost
Free look period
Return policy
Interest adjusted net cost
Which is used to compare cost of one policy against another to guide purchaser to policy that is competitively priced
Policy cost indices
Policy cost guide
Cost comparison methods
Cost comparison method
Cir=
Comparative interest rate
All are mandatory life ins policy provisions except
Misstatement of age
Grace period
Policy backdating
Incontestability
Policy backdating
It is not a mandatory provision and beyond 6 months is prohibited
H policies individual and group are what after policy has been in force for a period of two years
Official policy
Free look
Loan
Incontestable
Incontestable
Life ins policies are incontestable after policy has been in force for a period of
2 months
2 years
3 years
2 years
Policy will pays benefits based on what the premiums paid would have purchased at insured’s correct age
Misstatement of insured age
Settlement of a death benefit
Free look
Misstatement of insured age
A life ins policy that has cash value must have a provision for policyowner to
Borrow From those values
Any life ins policy with cash value must have a
Grace period
Policy loan
Limitation period
Nonforfeiture provision
Nonforfeiture provision
Life ins policies require that initial premium be paid
In advance
Insurer must pay death claims with
2
4
6
(Months)
Two months
Settlement of a death benefit must not be less than the
Claimant proceeds
Free look proceeds
Grace period proceeds
Face amount of the policy
Fixed annuity free look=
20 days
Free look period=
15 days
Return policy for an unconditional refund without penalty beginning the day consumer receives the contract
Grace period
Grace loan
Limitation period
Free look
Free look
Life ins policy may not contain provision under which lawsuit may be filed to a period of less than two years after cause of action
Settlement upon maturity
Nonforfeiture
Certain limitations periods
Certain limitations period
In certain limitations period policy may not include provision that limits time to period of less than
2
4
6
Years
2
All are mandatory life ins policy provisions except
Misstatement of age
Incontestability
Policy backdating
Grace period
Policy backdating is not a mandatory provision
In tx Nonforfeiture law life ins policies insurers must offer at least ONE of the following Nonforfeiture options except
Reduce paid up
Extended term
Shortened benefit period
Reduction of premium
Reduction of premium
Reduction of premium is NOT
A nonfortfeiture option
It is a dividend option
Reduction of premium=
Dividend option
If misstate age on group policy app
Adjust the premium
Cancel coverage
Issue an amended policy
Adjust the premium
Policyowner surrenders his life ins policy that has been in force for five years within 60 days after premium due date, must pay
Death benefit
Cash surrender value
Nothing
Cash surrender value
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of termination of employment
14 days
28
30
31
31
Grace period in group policies=
31 days
Individual covered under group life ins policy may convert to any of the following EXCEPT
Whole life
Level term
Universal life
Variable universal life
Level term
