Policy Riders, Provisions, Options, and Exclusions
Does a grace period provision apply to the initial premium on a life policy?
Answer and explanation
Answer: C. The grace period standard covers any premium due except the first, because the initial premium is the consideration that puts the contract in force rather than a payment keeping an in-force contract alive. The provision is not limited by delivery or by policy year.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Grace Period, premiums covered
More policy riders, provisions, options, and exclusions questions
- What benefit does a return of premium (ROP) term rider provide if the insured survives to the end of the term?
- What condition must be satisfied before a waiver of premium rider waives the policyowner's premium obligations?
- What do the uniform standards say about restrictions on assigning a policy?
- What does a life policy's suicide provision generally limit?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
- What does consumer guidance say about an owner changing beneficiaries?
592 Georgia questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.