Policy provisions – Lesson 4

Question 0

A benefit of a policy loan is it that no interest is charged. True or false?

Answer 0

False

Question 1

The entire contract is considered to be:

Answer 1

The policy, attached application and any attached riders.

Question 2

Any assignment of a policy must be approved by the insurer. True or false?

Answer 2

False

Question 3

A man wanted his 3 children to receive the proceeds from his policy. If a child predeceases him, he wanted only the remaining children to receive the proceeds. This is called:

Answer 3

Per capita

Question 4

If Mary is named as an irrevocable beneficiary on her aunts life policy, can she take out a loan on the policy?

Answer 4

Yes, but only with her aunt’s permission

Question 5

What happens to the proceeds from a policy if the beneficiary died before the policyowner and the policyowner did not name a new beneficiary?

Answer 5

The proceeds are paid to the policy owner’s estate.

Question 6

What happens when proceeds of a life insurance policy are paid into the estate of the insured?

Answer 6

It is subject to administrative delays and expenses.

Question 7

The insured and the primary beneficiary are killed as a result of the same accident. What clause will assure that the contingent beneficiary will receive the proceeds?

Answer 7

Uniform simultaneous death act.

Question 8

What is the main purpose of the short-term survivorship clause?

Answer 8

To preserve the amounts the contingent beneficiary would collect from the policy.

Question 9

In insurance, which party has the right to name a beneficiary, use the cash values, and paid a premium?

Answer 9

Policyowner

Question 10

What part of an insurance contract states under what conditions a policy will not pay a death claim?

Answer 10

Exclusions

Question 11

In insurance, what is the entire contract?

Answer 11

The policy and the attached application.

Question 12

A provision of the policy that describes how and when a benefit will be paid is the?

Answer 12

Insuring clause

Question 13

The policy conditions represent the obligations of:

Answer 13

Both the insured and insurer.

Question 14

If the policy is issued and if return within the specified time allotted, the insured will receive a 100% refund. True or false?

Answer 14

True

Question 15

What is the effect of the incontestable clause on a life insurance policy?

Answer 15

It prevents the insurer from voiding the contract on grounds of misrepresentation, concealment, or fraud on the part of the insured if he dies after the period stated in the policy.

Question 16

If the insurer finds that the insured’s age was misstated on the application after the insured dies, what will the insured do?

Answer 16

Pay the beneficiary the face amount equal to that which the premium would have purchased at the correct age.

Question 17

When would a policy no longer be in force and not provide coverage?

Answer 17

After the grace period has expired.

Question 18

How may a life insurance policy be reinstated within time limits after it has lapsed due to nonpayment of premiums?

Answer 18

By paying past due premiums plus interest as well as submitting an application and evidence of insurability.

Question 19

If the insured commits suicide within the time specified by the suicide clause, the insurance company may do what?

Answer 19

1. Prove that death was by suicide.
2. Return premiums to beneficiary.
3. Refuse to pay any benefits.

Question 20

In California the free look period is how long?

Answer 20

10 days (20 if replacements is involved)

Question 21

The title page in the policy is also referred to as what?

Answer 21

Data page

Question 22

Life policies are referred to as:

Answer 22

Valued policies

Question 23

Starting 1995, the free look for senior citizens age 60 and older was changed to how many days?

Answer 23

30 days