Policy Riders, Provisions, Options, and Exclusions
What is the maximum contestable period the uniform standards allow?
Answer and explanation
Answer: C. The uniform standards provide that the contestable period shall be no greater than two years from the date of issue during the lifetime of the insured. The period is capped rather than left to the insurer, and it must run during the insured's lifetime.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Incontestability
More policy riders, provisions, options, and exclusions questions
- 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?
- A designation names three primary beneficiaries but assigns no percentages. All three survive the insured. Under the default stated in the Compact application standard, how are proceeds divided?
592 Georgia questions like this one.
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