DC DC Life Insurance 2

Question 1

Which DC life insurance policy provision requires the insurer to continue coverage for a limited time after a premium is missed?

Accepted Answer

Grace period provision

Answer

Reinstatement clause

Answer

Incontestability clause

Answer

Suicide exclusion

Question 2

A DC life insurance policy's cash surrender value is best described as:

Accepted Answer

The amount the policyholder receives upon voluntarily terminating the policy

Answer

The total premiums paid over the policy's life

Answer

The amount payable to the insurer if the policy lapses

Answer

The face amount paid to the beneficiary at death

Question 3

Under DC regulations, who has the right to change the beneficiary of a life insurance policy if no irrevocable beneficiary has been named?

Accepted Answer

The policyowner

Answer

Only the beneficiary

Answer

The insurer at its discretion

Answer

The DC Insurance Commissioner

Question 4

What does the DC nonforfeiture law require for permanent life insurance policies?

Accepted Answer

Insurers must offer extended term or reduced paid-up options when a policy lapses

Answer

Policies must include a suicide exclusion

Answer

Premiums must be fixed for the policy's entire duration

Answer

Policies must be renewable until age 100

Question 5

A DC universal life insurance policy allows the policyowner to do which of the following?

Accepted Answer

Adjust the death benefit and premium payments within certain limits

Answer

Only increase the death benefit, never decrease it

Answer

Convert to a term policy at any time at no cost

Answer

Transfer ownership to a family member tax-free

Question 6

In DC, the standard suicide exclusion clause in a life insurance policy typically excludes coverage for suicide occurring within how many years of policy issue?

Accepted Answer

2 years

Answer

6 months

Answer

1 year

Answer

5 years