Policy Riders, Provisions, Options, and Exclusions
A flexible-premium life policy has lapsed and the owner applies for reinstatement within the contractual period. Which combination may the insurer require?
Answer and explanation
Answer: B. The reinstatement provision may require evidence of insurability, specified funding to restore the policy, and repayment or reinstatement of policy loans with permitted interest. The policy must describe these requirements.Source: Interstate Insurance Product Regulation Commission — Individual Flexible Premium Adjustable Life Insurance Policy Standards — § 3 > Y. Reinstatement (1)–(7)
More policy riders, provisions, options, and exclusions questions
- A cash-value policy has an elected automatic premium loan provision and an unpaid premium at the end of the grace period. If sufficient loan value exists, what occurs?
- A cash-value policyowner stops paying premiums but wants to preserve some policy value. Which group contains nonforfeiture choices?
- A compliance reviewer checks a Texas life policy form before filing. Which entire-contract clause fits Texas law?
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A designation names three primary beneficiaries but assigns no percentages. All three survive the insured. Under the default stated in the Compact application standard, how are proceeds divided?
- A family has a children's rider that covers eligible children at one premium rate. They later adopt another eligible child. Which rider feature may apply?
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