Policy Riders, Provisions, Options, and Exclusions
In an insurance contract, what constitutes the applicant's legal consideration?
Answer and explanation
Answer: D. Consideration provided by the applicant consists of the initial premium payment and truthful application statements.Source: NAIC Buyer's Guide — PDF page 3, Consideration
More policy riders, provisions, options, and exclusions questions
- A policyowner exercises a long-term care rider on a life policy and receives benefits. What is the effect on the policy's death benefit?
- A policyowner wants a lender to receive enough death proceeds to satisfy a loan balance. Which policy action may accomplish this?
- A policyowner wants disability protection on a flexible-premium universal life policy. Which rider most directly addresses the policy's recurring mortality charge?
- A policyowner wants level term coverage on a spouse under the owner's base life policy. Which rider is designed for that purpose?
- A policyowner's guaranteed insurability rider lists the birth of a child as an alternate option date. What may the owner generally do on that date?
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
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