Policy Riders, Provisions, Options, and Exclusions
An owner applies to reinstate a lapsed policy within the permitted period. What may the insurer require?
Answer and explanation
Answer: D. The uniform standards allow the insurer to require evidence of insurability and payment of overdue premiums, with limited exceptions permitting one month's premium where stated conditions are met. Reinstatement restores the original contract rather than replacing it, so it is neither automatic nor a new policy.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Reinstatement conditions
More policy riders, provisions, options, and exclusions questions
- An insured dies by suicide during the policy's valid initial suicide exclusion period. What minimum settlement does the Compact standard require?
- An insured dies during the grace period with the premium unpaid. What ordinarily happens?
- An insured dies eighteen months after issue and a material misrepresentation surfaces later. Why does the contestable period matter?
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
- An insured understated her age by 5 years on the application. At death, the insurer discovers the misstatement. How does the insurer handle the claim?
- An insured wants a benefit that supplies income after a qualifying total disability rather than merely waiving policy charges. Which rider most directly fits?
592 Georgia questions like this one.
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