The policy provision that allows the insured to return the policy to the insurer within a specified period of time and request a full refund of premium is the provision.
The insurer’s agreement to provide the coverage is stated in the .
The insured’s consideration for the contract consists of and the of premiums.
statements in the application
The consideration given by the insurer is thethe policy face amount if the insured dies during the coverage period and the premium has been paid.
promise to pay
The provision that states that the contract consists of the policy, the application, and other forms endorsed on or attached to the policy at the time of issue is called the
entire contract provision
The person purchasing the life insurance policy is referred to as the , and when the policy is issued, that person becomes the.
All rights of ownership are identified in the provision.
The provision that allows a policyowner to transfer ownership of the policy to another person is called the provision
A temporary assignment pledging the policy’s cash value as repayment of a loan would be considered a assignment
A permanent transfer of ALL rights of ownership to another would be an assignment.
The Internal Revenue Code (IRC) states that a policy owned by the insured within years of his death becomes part of his estate, subject to estate tax.
The only party who is able to borrow from the cash value of a policy is the .
A loan must be available to the policyowner after the policy has been in force for full years.
An insurer must give a policyowner notice if the amount of the loan plus interest ever reached the amount of the cash value in order to prevent the policy from lapsing.
one month/30 days’
An insurer may defer granting a loan request from a policyowner for up to months. This is known as the clause.
The policy will state the mode of premium payment.
The provision states that the insurer will loan the premium amount from the cash value if the premium has not been paid before the end of the grace period.
automatic premium loan
A $100,000 policy has an outstanding policy loan balance of $10,000, including principal and interest. If the insured dies before the loan is paid back, the beneficiary will receive as a death benefit.
The process of placing a lapsed permanent insurance policy back in force is called .
A policyowner may reinstate a lapsed policy within years of the lapse, provided that either insurance or insurance was the nonforfeiture option in effect.
An insured will have to pay all past due premiums, show proof of , and repay or reinstate any that existed prior to the lapse in order to reinstate his policy.
The provision that states that the insurer must settle a claim promptly upon death of the insured is referred to as the .
payment of claims provision
An insurer can only contest a claim due to fraud or misrepresentations in the application during the first years of the policy. This provision in the policy is called the .
A life insurance policy may exclude death due to, and .
If an insured commits suicide during a suicide clause’s stated period, the insurer will the paid , with no interest to the beneficiary.
The two versions of the war exclusion are the clause and the clause.
Under either version of the war exclusion, when the death is excluded, the insurer will refund either the or the paid, depending on the policy.
Generally, passengers on commercial flights are covered if death is due to aviation, but death of pilots, crew members and private aircraft are excluded.
In the event the insured and the primary beneficiary die at the same time or it’s simply not known who died first, the insurer presumes the died first because of the .
Uniform Simultaneous Death Act
A policy provision that states that the beneficiary must live a stipulated length of time after the insured dies in order to collect the death benefit is called the clause.
common disaster/shortterm survivorship
A beneficiary that cannot be changed is known as an beneficiary.
A beneficiary that can be changed is known as a beneficiary.
State law provides that a policy that will develop cash value must do so no later than the end of the policy’s year and that any cash value cannot be declared forfeited if the policy lapses due to nonpayment of premium. This law is referred to as the .
standard nonforfeiture law
The choices that a policyowner has upon lapse of a cash value policy are known as the options.
The nonforfeiture option that allows the policyowner to buy paid-up term insurance is called the option.
The nonforfeiture option that allows the policyowner to buy permanent life insurance at a lesser face amount is called the option.
Premiums are based on these three factors:, , and credited for the use of the premiums.
loading/expenses of insurer
Some policies offer a return of premium from the insurer’s divisible surplus to be distributed to the policyholders in the form of policy .
Policies that offer dividends are known as policies, while policies that do not offer dividends are called policies.
The five dividend options are , , , , and -year term insurance.
The dividend option that is considered a temporary option is the option.
The dividend choice that uses the dividend to buy additional paid-up insurance of the same type as the original policy is called .
The dividend option that is used to pay premiums is called the option.