Policy Riders, Provisions, Options, and Exclusions
The insured's age was misstated on a flexible-premium life application. When discovered, how should the provision generally respond?
Answer and explanation
Answer: C. A misstatement provision adjusts values, charges, or benefits using the correct age under the method stated in the policy. It is an adjustment mechanism, not an automatic forfeiture of coverage.Source: Interstate Insurance Product Regulation Commission — Individual Flexible Premium Adjustable Life Insurance Policy Standards — § 3 > Q. Misstatement of Age or Sex (1)–(5)
More policy riders, provisions, options, and exclusions questions
- A proposed insured disclosed membership in the U.S. military on the application. Under the Compact standard, may the base policy exclude death solely as a result of war or military service?
- A return of premium rider is attached to a permanent life policy. What does the rider add to the amount payable at the insured's death?
- A scheduled-premium life policy's grace period expires without payment, and no nonforfeiture or automatic-loan protection continues coverage. What follows?
- A terminally ill insured accelerates part of a policy's death benefit. What should the beneficiary expect at the insured's later death?
- A Texas individual life premium is overdue, but the insured dies during the policy's usual 31-day grace period. What is the usual claim result?
- A Texas life policy has remained in force for more than two years. A claim is filed based on information from the original application. What is the ordinary effect of the incontestability period?
590 Texas questions like this one.
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