Policy Riders, Provisions, Options, and Exclusions
After a Texas life policy has been in force for 2 years during the lifetime of the insured, under what condition can the insurer contest a claim?
Answer and explanation
Answer: B. The 2-year incontestability clause prevents the insurer from denying claims based on application misstatements after 2 years.Source: Texas Department of Insurance Guide — Contestable Period
More policy riders, provisions, options, and exclusions questions
- Why is naming a minor child directly as a life insurance beneficiary problematic?
- A beneficiary asks which part of the policy states the insurer's core promise to pay. Which provision should the producer point to?
- A beneficiary selects a straight life-income settlement. Which tradeoff is most important?
- A beneficiary wants equal installments of proceeds and interest for a selected number of years. Which settlement option fits?
- 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?
590 Texas questions like this one.
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