M Had An Annual Life Insurance Premium

Question: When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

Answer: at future dates specified in the contract with no evidence of insurability required

Question: S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT

Answer: beneficiary’s age

Question: When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

Answer: exclusion

Question: What provision in a life insurance policy states that the application is considered part of the contract?

Answer: Entire Contract provision

Question: Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

Answer: Payor clause

Question: Which of these is NOT considered to be a right given to a policyowner?

Answer: Modify a provision in the insurance contract

Question: How do life insurance companies handle cases where the insured commits suicide within the contract’s stated Contestable period?

Answer: Claims are denied under the Suicide clause of the policy

Question: M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

Answer: Pay face amount minus the past due premium

Question: In a Life insurance contract, an insurance company’s promise to pay stated benefits is called the

Answer: Insuring clause

Question: What does the ownership clause in a life insurance policy state?

Answer: Who the policyowner is and what rights the policyowner is entitled to