Exclusions and Prohibitions

Question 1

Name the 5 Standard Policy Exclusions [WASH-FUCK ]

Answer 1

These standard exclusions are not required by state insurance regulation, but are permitted:

• war
• aviation
• hazardous occupations and hobbies
• commission of a felony
• suicide

Question 2

What is NOT included in the Aviation and Hazardous Occupation and Hobbies Exclusions?

Answer 2

Travel as a passenger in an airliner is not included in this exclusion.

Question 3

What is the standard period period for a Suicide Provision to be in effect?

Answer 3

The suicide provision is included in virtually all life insurance policies. It serves to deny paying the death benefit if, during the first two years following policy issue, the insured commits suicide.

After the two-year period passes, death by suicide is covered.

If an insured does commit suicide during the two-year exclusion period, the insurance company returns the premiums paid, with interest. Most states recognize the two-year suicide period, though some limit this period to one year.

Question 4

Prohibited Policy Provisions

Answer 4

Most states do not permit insurance companies to include any provision in their contracts that

• limits the period for filing a lawsuit against the insurance company to less than one year after a triggering event is noted;
• makes the settlement of the cash value at maturity less than the sum of the face amount plus dividend additions less any loan amount;
• makes the acts or representations of the producer binding on the insured;
• makes the producer also the insured; and
• allows the policy to be forfeited if the total owed on a policy loan is less than the loan value of the policy.