policy provisions/riders/options/exclusions

Question 1

proof of loss must be submitted within how many days

Answer 1

60 days

Question 2

the provision that states the legal right or interest in a policy may be transfered

Answer 2

assignment

Question 3

the provision that defines how each policy will respond if the insured has two policies covering the same loss

Answer 3

other insurance

Question 4

the provision that states each policy will pay the same proportion of its limits to the overall coverage if there are more than one policy covering the same loss

Answer 4

pro rata

Question 5

notice of claim must be filed within how many days of a loss

Answer 5

20 days

Question 6

the provision that indicates whom money will go after death of the insured

Answer 6

beneficiary designation

Question 7

Provision that states when premiums will be due and how often they will be paid

Answer 7

payment of premiums

Question 8

provision that states for what period of time the policy will remain in effect after a premium payment has been missed

Answer 8

grace period

Question 9

the provision that details the conditions that will allow the insured to bring back coverage after a policy lapses and is terminated

Answer 9

reinstatement

Question 10

clause that prevents an insurer from denying a claim due to statements in an application after a specified period of time, even on the basis of material misstatement of fact or concealment of a material fact

Answer 10

incontestability clause

Question 11

the provision that allows the insurer to adjust the policy at anytime. If the applicant misstated his/her age or gender on the application and there is a claim

Answer 11

misstatement of age or gender

Question 12

the provision that states what must be included in the contract for it to be considered complete

Answer 12

entire contract

Question 13

General statement usually found on the first page of the policy identifying the insured, the insurance company, and the types of loss that will be covered

Answer 13

insuring clause

Question 14

provision found on the first page of the policy and makes clear that both parties to the contract must contribute something of value for the contract to be effective

Answer 14

consideration

Question 15

provision that states that the policyowner has all ownership rights, including the responsibility to pay premiums

Answer 15

ownership

Question 16

how must the right to cancel notice be in the policy

Answer 16

It must be in bold face type

Question 17

what is the only allowable reason for backdating

Answer 17

to affect a lower premium

Question 18

the provision that allows the policyholder the right to renew the coverage at the expiration date without evidence of insurability

Answer 18

renewable

Question 19

the provision that provides the policyholder the right to covert the policy to a permanent insurance policy without evidence of insurability

Answer 19

convertable

Question 20

assignment that involves transferring all rights of ownership to another person or entity. Permanent and total transfer of all the policy rights

Answer 20

Absolute Assignment

Question 21

Assignment that involves a transfer of partial rights to another person. assignment rights can be returned to the policyowner

Answer 21

Collateral Assignment

Question 22

The person with the first claim to the policy proceeds following the death of the insured. More than one may be named and then they would split the procceds

Answer 22

Primary Beneficiary

Question 23

The person who has the second claim in the event that the primary beneficiary dies before the insured

Answer 23

Contingent Beneficiary

Question 24

the person who is third in line for the death benefits in the event that both the primary and continent beneficiaries die before the insured

Answer 24

Tertiary Beneficiary

Question 25

what happens to the death benefits in the event of the insureds death and no beneficiary has been named

Answer 25

it goes to the insureds estate

Question 26

a type of beneficiary designation that can be changed at any time the policyowner chooses

Answer 26

revocable beneficiary

Question 27

a type of beneficiary designation that cannot be changed without the written consent of the beneficiary

Answer 27

Irrevocable

Question 28

a type of premium that remains the same throughout the duration of the contract

Answer 28

Level Premium

Question 29

Policies such as universal life policies allow the policy owner to pay more or less than the planned premium this is referred to as

Answer 29

Flexible premium

Question 30

The Rider that waives the premium for the policy if the insured becomes TOTALLY DISABLED and coverage remains in force until the insured is able to return to work

Answer 30

Waiver of Premium

Question 31

The Rider that allows the insured to purchase additional coverage at specific future dates (usually every 3 yrs) without having to prove insurability

Answer 31

Guaranteed Insurability

Question 32

The rider that if the payor (parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age.

Answer 32

Payor Benefit Rider

Question 33

the rider that pays some multiple of the face amount if death is the result of an accident as defined in the policy.

Answer 33

Accidental Death/ Accidental Death and Dismemberment

Question 34

the rider that provides coverage for one or more family members other than the insured.

Answer 34

Other Insured Rider

Question 35

the rider that allows children of the insured to be added to coverage for a limited period of time for a specified amount

Answer 35

Children’s Term Rider

Question 36

The rider that address the inflation factor by automatically increasing the amount of insurance without evidence of insurability from the insured

Answer 36

Cost of Living