Policy Provisions and Riders Flashcards
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Read the first 6 Policy Provisions and Riders flashcards as text
What is the 'incontestability clause' in a Canadian life insurance policy?
Answer: A clause preventing the insurer from voiding the policy after it has been in force for a specified period
The incontestability clause prevents the insurer from voiding a policy based on misrepresentation after it has been in force for a specified period, typically two years.
What is the purpose of the 'grace period' provision in a life insurance policy?
Answer: A period after a premium due date during which the policy remains in force despite non-payment
The grace period provides a window (typically 30 days) after a premium due date during which the policy remains in force even though the premium has not been paid.
What is an 'automatic premium loan' (APL) provision in a permanent life insurance policy?
Answer: A provision that automatically borrows against the policy's cash value to pay overdue premiums
The APL provision automatically uses the policy's cash value to pay premiums that are overdue, preventing policy lapse as long as sufficient cash value exists.
What is the 'accidental death benefit' (ADB) rider and how does it modify the base policy?
Answer: It provides an additional death benefit if the insured dies as a result of an accident
The ADB rider pays an additional death benefit (typically double the face amount, hence 'double indemnity') if the insured's death results from an accident.
What is the 'free look' or 'cooling off' period in Canadian insurance?
Answer: A period after policy delivery during which the policyholder can cancel for a full refund
The free look period gives policyholders a specified number of days after receiving their policy to review it and cancel for a full premium refund.
What does the 'assignment' provision allow a policyholder to do?
Answer: Transfer ownership or specific rights of the policy to another party
The assignment provision allows the policyholder to transfer ownership or specific rights of the policy to another party, such as a lender or trust.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- fcnb.ca — Test delivery, retake policy, score validity · verified Oct 2026
- insurancecouncilofbc.com — Fees, retake fee, eligibility, exam format, time limit, passing score, retake policy, score release, score validity, test delivery · verified Oct 2026
- fsrao.ca — Test delivery, eligibility, retake policy, score validity, fees, exam information · verified Oct 2026