Policy Riders, Provisions, Options, and Exclusions
An insured dies during a Texas policy's two-year contestable period. The insurer discovers a material false application statement. What may the insurer do?
Answer and explanation
Answer: A. During the two-year contestable period, the insurer may review application information. Texas consumer guidance states that a discovered false or omitted statement can support denial, with premiums returned to the beneficiary.Source: Texas Department of Insurance — Life Insurance Guide — How life insurance pays the death benefit > What is the contestable period?
More policy riders, provisions, options, and exclusions questions
- A policyowner wants a lender to receive enough death proceeds to satisfy a loan balance. Which policy action may accomplish this?
- A policyowner wants disability protection on a flexible-premium universal life policy. Which rider most directly addresses the policy's recurring mortality charge?
- A policyowner wants level term coverage on a spouse under the owner's base life policy. Which rider is designed for that purpose?
- A policyowner's guaranteed insurability rider lists the birth of a child as an alternate option date. What may the owner generally do on that date?
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
- A proposed insured disclosed membership in the U.S. military on the application. Under the Compact standard, may the base policy exclude death solely as a result of war or military service?
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