policy provisions/riders/options/exclusions Flashcards
proof of loss must be submitted within how many days
60 days
the provision that states the legal right or interest in a policy may be transfered
assignment
the provision that defines how each policy will respond if the insured has two policies covering the same loss
other insurance
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
pro rata
notice of claim must be filed within how many days of a loss
20 days
the provision that indicates whom money will go after death of the insured
beneficiary designation
Provision that states when premiums will be due and how often they will be paid
payment of premiums
provision that states for what period of time the policy will remain in effect after a premium payment has been missed
grace period
the provision that details the conditions that will allow the insured to bring back coverage after a policy lapses and is terminated
reinstatement
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
incontestability clause
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
misstatement of age or gender
the provision that states what must be included in the contract for it to be considered complete
entire contract
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
insuring clause
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
consideration
provision that states that the policyowner has all ownership rights, including the responsibility to pay premiums
ownership
how must the right to cancel notice be in the policy
It must be in bold face type
what is the only allowable reason for backdating
to affect a lower premium
the provision that allows the policyholder the right to renew the coverage at the expiration date without evidence of insurability
renewable
the provision that provides the policyholder the right to covert the policy to a permanent insurance policy without evidence of insurability
convertable
assignment that involves transferring all rights of ownership to another person or entity. Permanent and total transfer of all the policy rights
Absolute Assignment
Assignment that involves a transfer of partial rights to another person. assignment rights can be returned to the policyowner
Collateral Assignment
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
Primary Beneficiary
The person who has the second claim in the event that the primary beneficiary dies before the insured
Contingent Beneficiary
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
Tertiary Beneficiary
what happens to the death benefits in the event of the insureds death and no beneficiary has been named
it goes to the insureds estate
a type of beneficiary designation that can be changed at any time the policyowner chooses
revocable beneficiary
a type of beneficiary designation that cannot be changed without the written consent of the beneficiary
Irrevocable
a type of premium that remains the same throughout the duration of the contract
Level Premium
Policies such as universal life policies allow the policy owner to pay more or less than the planned premium this is referred to as
Flexible premium
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
Waiver of Premium
The Rider that allows the insured to purchase additional coverage at specific future dates (usually every 3 yrs) without having to prove insurability
Guaranteed Insurability
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.
Payor Benefit Rider
the rider that pays some multiple of the face amount if death is the result of an accident as defined in the policy.
Accidental Death/ Accidental Death and Dismemberment
the rider that provides coverage for one or more family members other than the insured.
Other Insured Rider
the rider that allows children of the insured to be added to coverage for a limited period of time for a specified amount
Children’s Term Rider
The rider that address the inflation factor by automatically increasing the amount of insurance without evidence of insurability from the insured
Cost of Living
