Life & Health Insurance Policy Provisions and Riders Flashcards
7 cards from real Life & Health Insurance Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Life & Health Insurance Policy Provisions and Riders flashcards as text
A policyholder submits a claim 10 months after an accidental injury. The policy has a 1-year proof-of-loss requirement. What happens?
Answer: The claim is valid because it was filed within the time limit
The claim is valid because it was submitted within the policy's 1-year proof-of-loss period.
Which provision requires that if an insured misstates their age on an application, benefits will be adjusted to what the premium paid would have purchased at the correct age?
Answer: Misstatement of Age provision
The Misstatement of Age provision adjusts benefits rather than voiding the policy when age is misstated.
A Waiver of Premium rider is triggered when the insured becomes totally disabled. After recovery, how does premium payment typically resume?
Answer: Premiums resume immediately upon recovery
Once the insured recovers from total disability, they must resume paying premiums to keep the policy in force.
Which rider gives a policyowner the right to purchase additional insurance at specified future dates without evidence of insurability?
Answer: Guaranteed Insurability rider
The Guaranteed Insurability rider allows purchase of additional coverage at option dates without proving insurability.
Under the Free Look provision, if a policyholder returns the policy within the free-look period, what refund is typically issued?
Answer: Full refund of all premiums paid
The Free Look provision entitles the policyholder to a full premium refund if the policy is returned within the specified period.
A life insurance policy lapses due to nonpayment. The insured later wants to reinstate. Which of the following is typically NOT required for reinstatement?
Answer: A new application with a higher face amount
Reinstatement restores the original policy; a new application for a higher face amount is not part of the reinstatement process.
Which health insurance provision limits the insurer's right to contest a claim based on misrepresentations after a policy has been in force for a specified period?
Answer: Incontestability clause
The Incontestability clause prevents the insurer from denying claims due to misrepresentation after the policy has been active for the specified period (usually 2 years).