Types of Policies
An insured's health worsens before a renewable term policy expires. The renewal right is still available. Which outcome best reflects that feature?
Answer and explanation
Answer: D. Renewable term can be continued without new evidence of insurability, but the renewal premium is generally higher.Source: National Association of Insurance Commissioners — Life Insurance Buyer's Guide — PDF page 5, Renewable Term versus Nonrenewable Term
More types of policies questions
- An owner of a flexible-premium deferred annuity wants to know if they can continue making purchase payments in the future. Which statement is most accurate?
- As an ordinary whole life policy matures over time and cash values increase, what happens to the insurer's net amount at risk?
- At what point does a standard ordinary whole life policy reach its ultimate maturity date?
- Before buying variable life, an applicant wants authoritative product-specific details about fees, investment options, and death-benefit features. Which document should the applicant request?
- Compared with standard level term for the same face amount, how does return-of-premium term usually price the added refund feature?
- Despite investment performance fluctuations in a variable whole life policy, what minimum guarantee does the insurer provide?
590 Texas questions like this one.
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