Life Provision-4b

Question 1

Insuring Clause

Answer 1

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

Question 2

Consideration clause

Answer 2

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

Question 3

Grace period

Answer 3

Period of time policyowners are allowed to pay an overdue premium

Question 4

Reinstatement

Answer 4

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

Question 5

Incontestable Clause

Answer 5

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

Question 6

Misstatement or age or sex

Answer 6

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

Question 7

Policy loan provisions

Answer 7

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

Question 8

Automatic premium loans

Answer 8

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

Question 9

Assignment clause or provisions

Answer 9

Right to transfer policy rights to another person or entity

Question 10

Absolute assignment

Answer 10

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

Question 11

Collateral assignment

Answer 11

Partial and temporary transfer of rights to another person or entity

Question 12

Free look

Answer 12

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

Question 13

Notice of claim

Answer 13

Describes the policyowners obligation to notify the insurance company

Question 14

Claim forms

Answer 14

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

Question 15

Proof of loss

Answer 15

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

Question 16

Time of payment of claims

Answer 16

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

Question 17

Payment of claims

Answer 17

Specified how and to whom claim payments are to be made

Question 18

Physical exam and autopsy

Answer 18

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

Question 19

Legal actions

Answer 19

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

Question 20

Beneficiary designation

Answer 20

Where the policyowner indicates who is to receive the proceeds

Question 21

Change of beneficiary

Answer 21

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

Question 22

Settlement options

Answer 22

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

Question 23

Other insureds provision also known as

Answer 23

Dependent riders

Question 24

Discretionary provision

Answer 24

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

Question 25

Change of occupation

Answer 25

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

Question 26

Unpaid premiums

Answer 26

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

Question 27

Cancellation

Answer 27

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

Question 28

Conformity with state statutes

Answer 28

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

Question 29

Illegal occupation

Answer 29

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

Question 30

Intoxicants and narcotics

Answer 30

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

Question 31

The policy face

Answer 31

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

Question 32

Guaranteed insurability option rider

Answer 32

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

Question 33

Exclusions and restrictions

Answer 33

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

Question 34

Nonforfeiture options

Answer 34

Cash surrender Extended term option Reduced paid up option

Question 35

Cash surrender

Answer 35

Allows the policyowner to receive the policy’s cash value

Question 36

Extended term option

Answer 36

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

Question 37

Reduced paid up option

Answer 37

Policyowner pays no more premiums but the face amount is decreased

Question 38

Waiver of premium rider

Answer 38

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

Question 39

Payor rider

Answer 39

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

Question 40

Accelerated benefit rider

Answer 40

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

Question 41

Accidental death benefit rider

Answer 41

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

Question 42

Accidental death and dismemberment

Answer 42

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

Question 43

Guaranteed insurability rider

Answer 43

Permits the policyowner to buy additional permanent life insurance

Question 44

Cost of living rider

Answer 44

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

Question 45

Return of premium rider

Answer 45

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

Question 46

Automatic premium Loan rider

Answer 46

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