Policy Riders, Provisions, Options, and Exclusions
A policy has been in force during the insured's lifetime beyond the contestable period, and the insurer finds an error in the original application. What may it do?
Answer and explanation
Answer: C. Once the contestable period has run during the insured's lifetime, the uniform standards close off contesting the validity of the contract, subject to stated exceptions such as fraud in procurement of an attached form. Rescission, a proportionate benefit cut, and a fresh application are not available on that ground, though a misstatement of age is handled by its own adjustment provision.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, effect of the provision
More policy riders, provisions, options, and exclusions questions
- A buyer compares annual and monthly premium modes for the same term policy. Which cost point should the buyer verify?
- 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 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?
592 Georgia questions like this one.
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