DC Life Insurance Flashcards

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

Answer: Grace period provision

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

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

Answer: The amount the policyholder receives upon voluntarily terminating the policy

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

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

Answer: The policyowner

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

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

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

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.

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

Answer: Adjust the death benefit and premium payments within certain limits

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

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?

Answer: 2 years

Most DC life insurance policies exclude suicide as a covered cause of death for the first two years the policy is in force.