Policy Riders, Provisions, Options, and Exclusions
What minimum grace period do the uniform standards require for a premium after the first?
Answer and explanation
Answer: A. The uniform standards require a minimum 31-day grace period for the payment of any premium due except the first. The first premium is what puts the contract in force and falls outside the provision. Individual states may require a different minimum, but 31 days is the standard applied for uniform product approval.Source: Interstate Insurance Product Regulation Commission — Individual Term Life Insurance Policy Standards — Uniform standards, Grace Period
More policy riders, provisions, options, and exclusions questions
- Why might an owner prefer reinstating a lapsed policy over buying a new one?
- 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?
592 Georgia questions like this one.
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