Life Insurance DA Policy Provisions, Riders and Options

Question 1

The __________stipulates that the policy and a copy of the application, along with any riders or amendments, constitute the ________

Answer 1

entire contract provision

Question 2

The _______________ starts when the policyowner receives the policy, not when the insurer issues the policy

Answer 2

free-look period

Question 3

The policy stipulates when the premiums are due, how often they are to be paid (monthly, quarterly, semiannually, annually, etc.) and to whom

Answer 3

Payment of Premiums Provision

Question 4

The _________ is the period of time after the premium due date that the
policyowner has to pay the premium before the policy lapses

Answer 4

grace period

Question 5

The _____________ provision allows a lapsed policy to be put back in force. The maximum time limit for reinstatement is usually 3 years after the policy has
lapsed

Answer 5

reinstatement

Question 6

If the policy owner elects to reinstate the policy, he/she will have to provide

Answer 6

evidence of insurability and pay all back

premiums plus interest

Question 7

The_____________ prevents an insurer from denying a claim due to statements in the application after the policy has been in force for 2 years

Answer 7

incontestability clause

Question 8

if the applicant has misstated his or her age on the application, in the event of a claim, the insurer has the right to adjust the _______

Answer 8

benefit

Question 9

Upon receipt of a written ____________, the insurer must pay death claims immediately. (Most states interpret this to be within 30 days.)

Answer 9

proof of loss

Question 10

all statements made by the applicant/insured are considered representations and not warranties, except in the case of fraud.

Answer 10

statements of the insured provision

Question 11

A ______________ is a written response to questions or statements made on an application for insurance which the applicant indicates are correct to the best of
his or her knowledge, and upon which the underwriter relies to issue a policy.

Answer 11

representation

Question 12

A __________ is a statement that is guaranteed to be true.

Answer 12

warranty

Question 13

At the request of the policy owner, a life insurance policy may be ___________ after the effective date of the policy.

Answer 13

altered or modified

Question 14

_________ are the types of risks the policy will not cover

Answer 14

Exclusions