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

The grace period provision, typically 30 days in DC, keeps a life policy in force after a missed premium payment.

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

Cash surrender value is the amount the insurer pays the policyholder if they cancel a permanent life insurance policy.

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

The policyowner retains the right to change a revocable beneficiary designation at any time.

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

DC nonforfeiture laws require that permanent life policies provide at least one nonforfeiture option such as extended term or reduced paid-up insurance when they lapse.

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

Universal life insurance offers flexible premiums and adjustable death benefits within policy guidelines.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC DC Life Insurance 2