DC DC Life Insurance 1

Question 1

In the District of Columbia, what is the free-look period for a newly issued life insurance policy?

Accepted Answer

10 days

Answer

20 days

Answer

30 days

Answer

5 days

Question 2

Which of the following best describes a term life insurance policy sold in DC?

Accepted Answer

Provides coverage for a specified period with no cash value

Answer

Provides permanent coverage with a cash value component

Answer

Pays dividends to policyholders annually

Answer

Accumulates tax-free savings for retirement

Question 3

Under DC law, the incontestability clause in a life insurance policy limits the insurer's right to contest the policy after how long?

Accepted Answer

2 years from issue

Answer

1 year from issue

Answer

5 years from issue

Answer

6 months from issue

Question 4

A DC life insurance applicant intentionally misrepresents a material fact on the application. What is the likely consequence?

Accepted Answer

The insurer may void the policy for material misrepresentation

Answer

The policy premium is increased

Answer

The insurer must honor the claim regardless

Answer

The policy is automatically converted to term

Question 5

Which of the following is a characteristic of whole life insurance policies available in DC?

Accepted Answer

Cash value accumulates on a tax-deferred basis

Answer

Coverage expires at age 65

Answer

Premiums increase every five years

Answer

Benefits are paid only for accidental death

Question 6

In DC, if a life insurance policyholder dies during the grace period without having paid the overdue premium, how is the claim typically handled?

Accepted Answer

The claim is paid but the unpaid premium is deducted from the death benefit

Answer

The claim is denied entirely

Answer

The claim is paid in full with no deductions

Answer

The policy is automatically reinstated before paying