Policy Riders, Provisions, Options, and Exclusions
An applicant discloses work as a demolition blaster, and underwriting approves the policy with an occupation exclusion. Which provision is consistent with official life policy standards?
Answer and explanation
Answer: C. A specific occupation exclusion may appear in the policy or an attached rider, endorsement, or amendment and must be based on information disclosed in the application or identified during underwriting. For an excluded death, the policy standards also require at least the greater of adjusted gross premiums paid or adjusted cash value, so a promise to pay nothing is not compliant.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — § 3.J. Exclusions (1)(b) and (2)
More policy riders, provisions, options, and exclusions questions
- Which key details are summarized in the policy face page and insuring clause?
- 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?
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