Chapter 10

Question 1

_____ is sometimes when the person buying insurance is both the owner of the policy and the insured.

Answer 1

Ownership

Question 2

_______ is the period of time where you can cancel your coverage and receive a refund of all premiums paid.

Answer 2

Free look period

Question 3

______is a period of time during which your policy is still in force after you’ve missed a premium payment.

Answer 3

Grace period

Question 4

________ is when after two years, a life insurance policy cannot be voided and a claim cannot be denied for material misrepresentation, concealment, or fraud.

Answer 4

Incontestability period

Question 5

If the insured commits suicide within the first 2 years of the policy, the insurer refunds all premiums paid back to the beneficiaries. This is called..?

Answer 5

Suicide clause

Question 6

Transferring ownership of a life insurance policy is called..?

Answer 6

assignment

Question 7

If the policy owner assigns their policy/transfers ownership of their policy to a creditor as collateral for a debt, then this is called..?

Answer 7

collateral assignment:

Question 8

_____ is when life insurance policies won’t usually pay out due to certain circumstances.

Answer 8

Exclusions