Chapter 5 & 6 Flashcards
If a owner assigns one or some of the rights to another but not all, he or she has engaged in what?
collateral or conditional assignment
Most conditional assignments involve the use of a assigner of a whole life cash policy as collateral for what?
secure a loan
The assignee is only entitled to be reimbursed out of the policy proceeds for
the amount of the outstanding loan
Except in the instances of fraud, the insure may challenge information supplied by the applicant on the application for up to two years
Incontestable Clause
Premium must be paid to the insurer or its representative in order for coverage to provided.
Premium Paying Provision
The period of time following the premium due date
Grace Period
Protects the policy owner from a unintentional laps, usually 31 days
Grace Period
If a policy lapse because premiums are not paid many contracts allow reinstatement along as its within 3 to 5 years.
Reinstatement provision
Reinstatements will occur with in how many days
45 days
Policy owner possess all rights contained in the policy
Owner rights provision
To convey any or all their assignment rights to someone else
assignment
absolute assignment
complete transfer
A policy owner has how long to review the policy to deice if they want to keep it.
10 days
Return the policy with giving the insurer a reason
Free look provision/right to examine
Allows insures to deny a death claim if death is caused by a list of exclusions
Exclusion Provision
When a death benefit is a attached to an employer no creditor can attach a lien on any kind to the proceeds
Spend Thrift Clause
When planning to leave remaining proceeds to a minor
Trust
distributions of equal amount are pad to the surviving children of the insured
per capita
If no beneficiary is listed or alive or sated when the insured dies where does the proceeds go?
Paid to the insured estate
This provision states a insurer may select as beneficiary an individual who appears to be equitably entitled to apportion or all of the life insurance proceeds since he or she have incurred final medical and funeral expenses of the insured.
Facility of payment clause
Which of the following policy provisions prevent an insurer from denying a death claim in the future after the purchase of a life insurance policy
Entire Contract Clause
Which of the following is true regarding an irrevocable beneficiary.
The beneficiary has the right to receive a copy of the policy
The insured died and the death benefit is paid to the named beneficiary. The beneficiary dies three months later. There are three surviving children. Any remaining proceeds from the policy covering the insured would be paid to which of the following.
The estate of the deceased beneficiary
Which of the following is protected by the common disaster clause
The contingent beneficiary
