Life Insurance Policies
Why can survivorship life sometimes be issued where one of the two proposed insureds is uninsurable individually?
Answer and explanation
Answer: C. Deferring the claim to the second death means an impaired life has far less effect on the expected timing of payment, so some insurers will accept a rated or even uninsurable second life. The face amount is not reduced and underwriting is not waived.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, survivorship life underwriting
More life insurance policies questions
- An employee's group cover ends and the employee dies eighteen days later, having applied for no individual policy. What does section 3220 provide?
- An individual purchases a life insurance policy that provides coverage for exactly one year. At the end of the year, the policyowner can renew the coverage without proving insurability, but the premium will increase based on their attained age. What type of policy is this?
- An insured buys convertible term at age 30 and converts it to permanent insurance at age 40. Which age generally determines the new premium?
- An insured’s health deteriorates during a renewable term policy. At the end of the term, which feature is most valuable?
- An insured's health worsens before a renewable term policy expires. The renewal right is still available. Which outcome best reflects that feature?
- An owner aged fifty takes a loan against a single premium whole life policy. What is the tax result?
621 New York questions like this one.
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