Chapter 14

A life insurance policy may not be back-dated more than:

6 months before the application.

An individual life insurance policy will generally contain all of the following except:

a copy of the Medical Investigation Bureau (MIB) report.

To reinstate a policy that has lapsed, the insured must: -pay all past due premiums plus interest -provide evidence of insurability -pay or reinstate any indebtedness under the policy -all of the above

all of the above

A misstatement of age by an applicant for life insurance.

changes the amount of insurance to the amount that the premium paid would have purchased at the correct age.

The specific requirements regarding evidence of insurability imposed on the insured under the reinstatement clause are

necessary to prevent adverse selection

In life insurance policies, a clause excluding death cause by war: -is prohibited by federal law. -is a standard policy provision -none of the other choices -Is often added to written policies during times of war

none of the other choices.

A collateral assignment of a life insurance policy is often used to:

provide security for a loan.

Mr. Miller wants to be able to change the beneficiary of his life insurance policy at any time. Which type of beneficiary designations should he use?

revocable.

Which of the following statements about the contestability of a life insurance policy is true?

the policy is usually contestable by the insurer only during the first two years of the contract.

The interest option is best suited to a situation

where the proceeds will not be needed until a later time