Learn as You Go!

a policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

automatic premium loan

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

consideration

who can provide skilled nursing care?

doctor

another term used to describe "no deductible" is

first dollar basis

which is TRUE about the cash surrender nonforfeiture option?

funds exceeding the premium paid are taxable as ordinary income

which of the following is true about the mandatory free look in Life insurance policy?

it commences when the policy is delivered

the provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

legal actions

which of the following is an example of a limited pay life policy?

life paid-up at Age 65

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?

no benefits

which of the following explains the policyowners right to change beneficiaries, choose options, and receive proceeds of a policy?

owners rights

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

purchase a single premium policy for a reduced face amount

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

required a premium increase each renewal

disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnins after recovery from a disability?

residual disability

if an insured withdraws a portion of the face amount in the form of accelerated beenfits because of a terminal illness, how will that affect the payable death benefit from the policy?

the death benefit will be smaller

in a life settlement contract, whom does the life settlement broker represent?

the owner

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

the performance of the policy portfolio

how soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?

within 90 days or as soon as reasonably possible, but not to exceed 1 year