Types of Policies
A 20-year term policy allows conversion only during its first 12 years. What happens to the conversion privilege after year 12?
Answer and explanation
Answer: B. A policy's conversion period may be shorter than its term. Term coverage can continue after the contractual right to convert has expired.Source: New York State Department of Financial Services — Consumer Life Insurance FAQ — What is convertible term life insurance? — conversion period may be shorter than term
More types of policies questions
- If the reference equity index suffers a severe negative loss (-20%) during a policy year, what protects the equity-indexed policyowner's cash value?
- In a fixed annuity contract, where are the contract funds invested by the insurance company?
- In variable life insurance, what most directly causes the policy’s cash value to fluctuate?
- Most modern fixed annuity contracts allow what penalty-free withdrawal percentage annually during the surrender charge period?
- To what external benchmark is the interest crediting rate of an equity-indexed life insurance policy tied?
- Two business owners need one life policy to provide funds when the first of them dies. Which policy trigger is required?
590 Texas questions like this one.
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