Policy Riders, Provisions, Options, and Exclusions
From what point does the period for returning a newly issued life policy for a full refund normally run?
Answer and explanation
Answer: B. The NAIC Life Insurance Buyer's Guide explains that an owner who is not satisfied may return the policy for a full refund within a certain period, usually stated on the first page, running from receipt of the policy. Tying the period to the application, the approval, or the premium would start the clock before the owner has the contract to read.Source: NAIC — Life Insurance Buyer's Guide — Buyer's Guide page 7, After you buy life insurance
More policy riders, provisions, options, and exclusions questions
- Why is naming a minor child directly as a life insurance beneficiary problematic?
- A beneficiary asks which part of the policy states the insurer's core promise to pay. Which provision should the producer point to?
- 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?
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