DC DC Life Insurance

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

DC requires a minimum 10-day free-look period during which a policyholder may return a new life insurance policy for a full premium refund.

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

Term life insurance provides death benefit coverage for a defined period and does not accumulate cash value.

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

DC follows the standard that life insurers may not contest a policy after it has been in force for two years, except for fraud.

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

Material misrepresentation on a life insurance application allows the insurer to rescind the policy, especially within the contestability period.

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

Whole life insurance builds cash value over time, and that growth is tax-deferred until withdrawn.

DC - District of Columbia Insurance Practice Test