Life Insurance Policy Provisions, Options, and Riders
Does the grace period in section 3203(a)(1) apply to the first premium?
Answer and explanation
Answer: B. A grace period keeps an in-force contract alive when a premium is missed, so it operates on premiums after the first; the initial premium is the consideration that puts the contract in force. The protection is not limited by delivery or by policy year.Source: N.Y. Ins. Law § 3203 — 3203(a)(1), Which premium the grace period covers
More life insurance policy provisions, options, and riders questions
- Why might an owner name a trust as the beneficiary of a life insurance policy?
- A beneficiary elects a fixed period of ten years and dies in year six. What becomes of the remaining instalments?
- A beneficiary receiving instalments under a spendthrift clause offers those future payments as security for a loan. What is the position?
- A child covered by a children's term rider reaches the age at which the cover ends. What is normally available?
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A dividend declared happens to exceed the premium next falling due under this option. What ordinarily follows?
621 New York questions like this one.
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