7.4 part 2
What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy?
benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age
All of the following are standard modes of premium payments EXCEPT
biennially
Which is NOT a life insurance policy provision?
cancellation
Which provision of a life insurance policy declares that the application is part of the contract?
entire contract clause
Which life insurance policy provision refers to the prompt payment of the death benefit?
payment of claims
Premium payment amounts can be all of the following EXCEPT
static
Alexandria assigns one of her $10,000 life insurance policies to a bank as collateral for a loan. The assignee is:
the bank
Who designates the beneficiary of a life insurance policy?
the policyowner
Which of the following statements about the reinstatement of individual life insurance policies is NOT correct?
to reinstate a policy, the insured is never required to provide evidence of insurability
A lapsed life insurance policy may be reinstated if all of the following requirements are met EXCEPT
waiting 7 years after the premium default date to reinstate
A policy's grace period is usually no more than
31 days
Which of the following statements regarding the insuring clause is NOT correct?
It is usually signed by the insured
Which of the following statements pertaining to reinstating a life insurance policy is NOT correct?
The cash surrender value must be forfeited to the insurer
Which standard life provision allows a policyowner to return a life policy, for any reason, within 10 days of delivery for a full refund of the premium?
free-look provision
Ramon's premium payment was due on June 1, but the company did not receive it until June 28. Which policy provision kept Ramon's policy from lapsing?
grace period
Which provision sets forth the insurer's basic promise to pay benefits upon the insured's death?
insuring clause
Individual life insurance policies must include all of the following provisions EXCEPT
a conversion provision
Samiya purchased a $500,000 life policy from LHC Insurance Company at the age of 35. At her death the insurance company discovered that her primary beneficiary was older than Samiya had stated on the application. How much will Samiya's beneficiary receive?
$500,000
A new life insurance policyowner has just received his policy. How long does he have to review and return it if he is not satisfied with it?
10 days
Which of the following statements is CORRECT?
After a policy is delivered to and accepted by the policyowner, it cannot be changed in any way, except in accordance with terms stated in the contract
Jamal's agent delivers his life policy to him on February 5. Until what date can Jamal opt to return his policy and receive a full refund of the premiums paid?
February 15th
To reinstate a lapsed policy, the insured must do all of the following EXCEPT
Sign a notice to the applicant regarding replacement
Stella sends a written request to her insurer for a change to be made on her policy. What is that change called?
an endorsement
All of the following are required provisions of group life insurance policies EXCEPT
an individual policy contract
While Debby was out of the country on vacation, she forgot to pay her life insurance premium, missed the grace period and wants to reinstate her policy. Which of the following is NOT a condition of reinstatement?
assignment of a new beneficiary
Nicole plans to take out a $200,000 mortgage for a vacation home. Her bank, however, requires her to provide some type of collateral for the loan. If Nicole owns a $500,000 whole life insurance policy, the policy:
may be used as collateral for the loan
All of the following are life insurance policy provisions EXCEPT
notice of claims
This significance of a free-look provision is that it
provides life insurance policyholders with the right to return their policies for any reason within 10 days of delivery for a full refund of premiums
Which of the following policyowner rights relates directly to the cash value of permanent insurance?
right to take a policy loan
Which of the following is NOT required in order to reinstate a lapsed permanent life policy?
submit an application for reinstatement within 4 years of the lapse
Janet, the insured, dies during a grace period for her $50,000 life policy. What happens, considering that her premium has not been paid?
the amount of the premium due is deducted from the policy proceeds paid to the beneficiary
A life insurance policyowner has all of the following rights EXCEPT
the right to change the grace period