What Does The Ownership Clause

Question: The Consideration clause in a life insurance policy indicates that a policyowner’s consideration consists of a completed application and

the initial premium

agreeing to a physical examination

delivery of policy

disclosure of any medical conditions

Answer: The initial premium-

The Consideration clause states that the policyowner’s consideration consists of a completed application and the first initial premium.

Question: What action will an insurer take if an interest payment on a policy loan is not made on time?

cancel the policy if not paid within the grace period

automatically add the amount of interest due to the loan balance

subtract from any dividends owed

disallow any further loans

Answer: Automatically add the amount of interest due to the loan balance-

Unpaid interest from a policy loan is added to the loan balance if not paid by the due date.

Question: Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?

Policy Exclusion

Incontestable

Entire Contract

Assignment

Answer:

Question: If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT

When the cause of death is unknown

When the state prohibits this by law

When consent for the autopsy is not obtained

When foul play was a contributing factor

Answer: When the state prohibits this by law-

Applicable state laws that prevent an autopsy take precedence.

Question: What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?

Premiums may increase at time of renewal

Premiums may increase at any time

Policy may be renewed at the discretion of the insured

Policy may be amended by insurer at any time

Answer: Premiums may increase at time of renewal-

A Conditionally Renewable Health Insurance policy can increase premiums at time of renewal.