Life & Health Insurance Policy Provisions and Riders Flashcards
7 cards from real Life & Health Insurance Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Life & Health Insurance Policy Provisions and Riders flashcards as text
A life insurance policy's grace period has expired and the policy has lapsed. Which nonforfeiture option typically provides the longest continued coverage?
Answer: Extended Term insurance
Extended Term insurance uses the cash value to purchase term insurance for the full face amount for as long as the cash value will support it, often providing the longest duration of coverage.
Under a health insurance policy, what is the purpose of the 'physical examination and autopsy' provision?
Answer: It gives the insurer the right to examine the insured or conduct an autopsy when a claim is contested
This provision grants the insurer the right to examine the claimant or order an autopsy (where permitted) to verify the legitimacy of a claim.
A policyowner names their spouse as the primary beneficiary but does not designate a contingent beneficiary. The spouse predeceases the insured. Who receives the death benefit?
Answer: The insured's estate
If the primary beneficiary predeceases the insured and no contingent beneficiary is named, the death benefit goes to the insured's estate.
The Accidental Death Benefit rider is also commonly known as:
Answer: Double Indemnity rider
The Accidental Death Benefit rider is commonly called Double Indemnity because it typically pays twice the face amount if death results from an accident.
Which provision in a life insurance policy prevents the insurer from denying a death claim based on misrepresentations in the application after the policy has been in force for two years?
Answer: Incontestability clause
The Incontestability clause bars the insurer from contesting the policy's validity based on misrepresentation after the policy has been active for two years.
A policyholder wants to convert their group term life insurance to individual permanent coverage upon leaving employment. Which provision allows this?
Answer: Conversion privilege
The Conversion privilege allows a group life insurance certificate holder to convert to an individual permanent policy within a set period after leaving the group, without evidence of insurability.
Under the 'Legal Actions' provision in a health insurance policy, what is the minimum time period an insured must wait after submitting proof of loss before filing suit?
Answer: 60 days
The Legal Actions provision typically requires the insured to wait at least 60 days after submitting proof of loss before initiating legal action against the insurer.