Policy Riders, Provisions, Options, and Exclusions
An insured dies eighteen months after issue and a material misrepresentation surfaces later. Why does the contestable period matter?
Answer and explanation
Answer: D. The standard fixes the contestable period at no greater than two years from issue during the lifetime of the insured, so a death at eighteen months leaves the period incomplete and the contract contestable. Time passing after death does not close the period, and discovery does not restart it.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, during the lifetime of the insured
More policy riders, provisions, options, and exclusions questions
- 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?
- Under the uniform standards, when does an additional interest rate begin to apply to unpaid death proceeds?
- What benefit does a return of premium (ROP) term rider provide if the insured survives to the end of the term?
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