Policy Riders, Provisions, Options, and Exclusions
An owner signs a policy assignment before the insurer receives notice. The insurer takes an allowed action without knowledge of it. Under the Compact standard, how is the timing handled?
Answer and explanation
Answer: D. The Compact standard permits an assignment to take effect on the date the owner signs notice, unless otherwise specified, but protects payments made or actions taken by the company before it receives that notice.Source: Interstate Insurance Product Regulation Commission — Individual Flexible Premium Adjustable Life Insurance Policy Standards — § 3 > C. Assignment (1)–(3)
More policy riders, provisions, options, and exclusions questions
- What right does a guaranteed insurability rider (GIR) grant to the policyowner?
- What standard requirements must a policyowner satisfy to reinstate a lapsed life insurance policy?
- When an increasing term rider is added to a whole life policy to provide a return-of-premium death benefit, what does the total benefit equal at death?
- When does the free-look period for a newly delivered life insurance policy begin?
- When is a contingent beneficiary generally next in line to receive life insurance proceeds?
- Where is the insurer's fundamental obligation to pay the death benefit upon receipt of proof of death set forth?
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