Life & Health Insurance Exam Life & Health Insurance Policy Provisions and Riders 4

Question 1

A life insurance policy's grace period has expired and the policy has lapsed. Which nonforfeiture option typically provides the longest continued coverage?

Accepted Answer

Extended Term insurance

Answer

Extended Term insurance uses the cash value to purchase term insurance for the full face amount for as long as the cash value will support it, often providing the longest duration of coverage.

Question 2

Under a health insurance policy, what is the purpose of the 'physical examination and autopsy' provision?

Accepted Answer

It gives the insurer the right to examine the insured or conduct an autopsy when a claim is contested

Answer

This provision grants the insurer the right to examine the claimant or order an autopsy (where permitted) to verify the legitimacy of a claim.

Question 3

A policyowner names their spouse as the primary beneficiary but does not designate a contingent beneficiary. The spouse predeceases the insured. Who receives the death benefit?

Accepted Answer

The insured's estate

Answer

If the primary beneficiary predeceases the insured and no contingent beneficiary is named, the death benefit goes to the insured's estate.

Question 4

The Accidental Death Benefit rider is also commonly known as:

Accepted Answer

Double Indemnity rider

Answer

The Accidental Death Benefit rider is commonly called Double Indemnity because it typically pays twice the face amount if death results from an accident.

Question 5

Which provision in a life insurance policy prevents the insurer from denying a death claim based on misrepresentations in the application after the policy has been in force for two years?

Accepted Answer

Incontestability clause

Answer

The Incontestability clause bars the insurer from contesting the policy's validity based on misrepresentation after the policy has been active for two years.

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Life & Health Insurance Policy Provisions and Riders 4