Policy Riders, Provisions, Options, and Exclusions
An insured dies on day 20 of a policy's 31-day grace period with an overdue premium. What benefit does the beneficiary receive?
Answer and explanation
Answer: D. Coverage remains in force during the grace period. If death occurs, the insurer pays the death benefit less the unpaid premium.Source: Texas Department of Insurance Guide — What if I miss a premium payment?
More policy riders, provisions, options, and exclusions questions
- A Texas individual life premium is overdue, but the insured dies during the policy's usual 31-day grace period. What is the usual claim result?
- A Texas life policy has remained in force for more than two years. A claim is filed based on information from the original application. What is the ordinary effect of the incontestability period?
- A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
- A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
- A variable life owner takes a policy loan and leaves it outstanding. Which effect should the owner expect?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
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