Policy Riders, Provisions, Options, and Exclusions
An owner returns a newly delivered policy within the stated review period. What does consumer guidance say results?
Answer and explanation
Answer: C. The NAIC Life Insurance Buyer's Guide describes the right as returning the policy for a full refund within the stated period. Deductions for coverage or administration, and confinement to a credit, are not what the guidance describes.Source: NAIC — Life Insurance Buyer's Guide — Buyer's Guide page 7, Full refund
More policy riders, provisions, options, and exclusions questions
- A buyer compares annual and monthly premium modes for the same term policy. Which cost point should the buyer verify?
- A cash-value policy has an elected automatic premium loan provision and an unpaid premium at the end of the grace period. If sufficient loan value exists, what occurs?
- A cash-value policyowner stops paying premiums but wants to preserve some policy value. Which group contains nonforfeiture choices?
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A designation names three primary beneficiaries but assigns no percentages. All three survive the insured. Under the default stated in the Compact application standard, how are proceeds divided?
- A family has a children's rider that covers eligible children at one premium rate. They later adopt another eligible child. Which rider feature may apply?
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