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Insurance > Life Provision-4b > Flashcards

Life Provision-4b Flashcards

1
Q

Insuring Clause

A

Insurers basic promise to pay specified benefits to a person in the event of a covered loss

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2
Q

Consideration clause

A

Policy owner must pay a premium in exchange for insurers promise to pay benefits

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3
Q

Grace period

A

Period of time policyowners are allowed to pay an overdue premium

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4
Q

Reinstatement

A

Permits the policy owner to reinstate a policy that has lapsed as long as the policy owner can provide proof of insurability

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5
Q

Incontestable Clause

A

Prohibits the insurer from questioning the validity of the contract after a certain period of time has elapsed

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6
Q

Misstatement or age or sex

A

Allows the insurer to adjust the policy benefits if the insureds age or sex is misstated on the policy application

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7
Q

Policy loan provisions

A

Policies that have cash value also have a policy loan and withdrawal provisions

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8
Q

Automatic premium loans

A

Allows the insurer to automatically use the policy cash value to pay an overdue premium

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9
Q

Assignment clause or provisions

A

Right to transfer policy rights to another person or entity

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10
Q

Absolute assignment

A

When the assignee receives full control of the policy and rights to the policy benefits from the policy owner

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11
Q

Collateral assignment

A

Partial and temporary transfer of rights to another person or entity

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12
Q

Free look

A

Policyowner is permitted a certain number of days once the policy is delivered to look it over

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13
Q

Notice of claim

A

Describes the policyowners obligation to notify the insurance company

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14
Q

Claim forms

A

Company’s Responsibility to supply a claim form to the insured within 15 days after receiving notice of claim

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15
Q

Proof of loss

A

Statement that the insured must provide to the insurance company to show that a loss actually occurred

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16
Q

Time of payment of claims

A

Provides for immediate payment of the claim after the insurer receives notification

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17
Q

Payment of claims

A

Specified how and to whom claim payments are to be made

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18
Q

Physical exam and autopsy

A

Entitles a company at its own expense to make physical examinations of the insured

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19
Q

Legal actions

A

Insured cannot take legal action against the company in a claim dispute until after 60 days

20
Q

Beneficiary designation

A

Where the policyowner indicates who is to receive the proceeds

21
Q

Change of beneficiary

A

Insured may change the beneficiary designation at any time unless a beneficiary has been named irrevocably

22
Q

Settlement options

A

Where the ways in which the proceeds can be paid out or settled are explained

23
Q

Other insureds provision also known as

A

Dependent riders

24
Q

Discretionary provision

A

Limits the way a court can review a claim denial and makes it difficult for the court to conduct a fair review of the claim

25
Q

Change of occupation

A

Allows the insurer to reduce the maximum benefit payable under the policy if the insured switches to a more hazardous occupation

26
Q

Unpaid premiums

A

If there is an unpaid premium at the time a claim becomes payable, the amount of the premium is to be deducted from sum

27
Q

Cancellation

A

Gives the company the right to cancel the policy at any time with 45 days written notice to the insured

28
Q

Conformity with state statutes

A

Any policy provision that is in conflict with state statutes in the state where the insured lives at the time the policy is issued

29
Q

Illegal occupation

A

Specifies that the insurer is not liable for losses attributed to the insureds being connected with a felony or participation in any illegal occupation

30
Q

Intoxicants and narcotics

A

Insurer is not liable for any loss attributed to the insured while intoxicated or under the influence of narcotics

31
Q

The policy face

A

Contains a summary of the type of policy and the coverage provided by the policy

32
Q

Guaranteed insurability option rider

A

Allows a policyowner to purchase additional life insurance coverage at specified dates without providing evidence of insurability

33
Q

Exclusions and restrictions

A

Situations or conditions which are not covered or covered with substantial limits

34
Q

Nonforfeiture options

A

Cash surrender
Extended term option
Reduced paid up option

35
Q

Cash surrender

A

Allows the policyowner to receive the policy’s cash value

36
Q

Extended term option

A

Permits the policyowner to use the policy’s cash value to buy level extended term insurance for a specified period

37
Q

Reduced paid up option

A

Policyowner pays no more premiums but the face amount is decreased

38
Q

Waiver of premium rider

A

Allows the policyowner to waive premium payments during a disability and keeps the policy in force

39
Q

Payor rider

A

If individual paying the premium on a juvenile life policy becomes disabled or dies the payor rider ensures that premiums will be waived

40
Q

Accelerated benefit rider

A

Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness and expected to die within 1-2 years

41
Q

Accidental death benefit rider

A

Pays an additional sum to the beneficiary if the insured dies due to an accident

42
Q

Accidental death and dismemberment

A

May be added to a life insurance policy pays benefits for dismemberment and accidental death

43
Q

Guaranteed insurability rider

A

Permits the policyowner to buy additional permanent life insurance

44
Q

Cost of living rider

A

Allows the policy face amount to be adjusted to account for inflation based on the consumer price index

45
Q

Return of premium rider

A

Pays the total amount of premiums paid into the policy in addition to the face value

46
Q

Automatic premium Loan rider

A

Allows the insurance company to deduct overdue premium from an insureds cash value by the end of the grace period

Insurance (13 decks)

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