Policy Riders, Provisions, Options, and Exclusions
A beneficiary asks which part of the policy states the insurer's core promise to pay. Which provision should the producer point to?
Answer and explanation
Answer: B. The insuring clause is the insurer's basic promise: on receipt of due proof of the insured's death, and subject to the policy terms, it will pay the death benefit to the named beneficiary.Source: NAIC Life Insurance Buyer's Guide — Policy provisions: the insuring agreement
More policy riders, provisions, options, and exclusions questions
- Which life policy exclusion addresses death caused by hazards of the insured's specifically identified job?
- Which list contains common life insurance premium payment modes?
- Which party holds the exclusive right to borrow against policy cash values or request nonforfeiture options?
- Which premium mode results in the lowest total annual premium outlay for a life policy?
- Which statement about dividends on a participating whole life policy is correct?
- Why is naming a minor child directly as a life insurance beneficiary problematic?
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