LIFE INSURANCE POLICY PROVISIONS Flashcards
What does per capita beneficiary depiction mean?
it means per person / poer head
If no beneficiary is listed, policy benefits will be paid to the insured’s ___
estate
Which payment mode would be the least expensive over the course of a year?
the annual payment mode
What happens to a policy if the premium is not paid during the grace period?
it will lapse for nonpayment of premium
___ is the transfer of policy rights to another party
assignment
beginning on the policy delivery date, the free look provision must be provided for no less than ___ days.
10
A ___ is a trust listed in a person’s will.
testamentary
which provision allows aninsurer to charge a service fee for the collection of premium?
payment of premium provision
what is the name for an insurer’s consideration to the applicant?
the warranty
first-in-line beneficiaries are also known as ___, second-in-line as ___, and third-in-line as ___.
primary, contingent, tertiary
who selects how often a policy premium is paid?
the policyowner
an insurer must respond to an applicant for reinstatement with ___ day of receiving the paperwork.
45 days
T or F: a term to term policy conversion with the same company does not require evidence of insurability
true
benefit proceeds left to an insured’s estate will be decided by a ___ court
probate court
Does a beneficiary have an owner’s rights?
no
which type of policy type allows for cash value loans - term or whole life?
whole life
policy loan interest is due each year on the ___ anniversary date
policy anniversary date
would it be better to reinstate an existing policy or attempt to purchase a new policy?
reinstate the original policy since premium is based on insured’s age at issuance and may result in lower premiums
which beneficiary depiction may not be changed without permission from the beneficiary?
an irrevocable beneficiary depiction
to whole is the interest earned on assets retained by an insurer taxed?
to the beneficiary
suicide is covered once the policy has been issued for ___ years
2 years
a ___ is usually established when benefits are payable to a minor
trust
a women listed as a man on an application will probably receive a ___ benefit at death
higher
what is the most common life insurance policy exclusion
war
what two items constitute an applicant’s consideration
application information and initial premium
death by suicide is not covered during the first ___ years of policy issue.
2 years
do beneficiaries have contractual rights to a contract?
no
how long is a grace period?
no less than 31 days
which beneficiary designation means per family line or lineage?
the per stirpes beneficiary designation
taking a cash value policy loan ___ create a taxable event
does not
