Policy Riders, Provisions, Options, and Exclusions
An insured dies during the grace period with the premium unpaid. What ordinarily happens?
Answer and explanation
Answer: A. The grace period keeps the contract in force while the premium remains unpaid, so a death within it is covered, with the overdue premium ordinarily taken from the proceeds. The policy has not lapsed, the beneficiary is not asked to fund the premium separately, and no penalty beyond the premium is applied.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, effect during the grace period
More policy riders, provisions, options, and exclusions questions
- In an insurance contract, what constitutes the applicant's legal consideration?
- On what basis are dividends paid under a participating whole life policy?
- The insured is not the owner of a cash-value life policy. The insured asks to take a policy loan without the owner's authorization. Which response best reflects the parties' roles?
- The insured's age was misstated on a flexible-premium life application. When discovered, how should the provision generally respond?
- Under standard individual life policy provisions, what is the maximum initial suicide exclusion period permitted under IIPRC compact standards?
- Under the entire contract provision, what elements constitute the legal agreement between the owner and insurer?
592 Georgia questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.