| A | B |
|---|
| If age was mistated | insurer can adjust the benefits |
| Misstatement of Age provision | coverage will be adjusted to adjust the insured's true age if misstatement of age is dicsovered |
| Suicide provision | safeguards the insurer from an insurer considering suicide |
| Suicide provision lasts this many years | 2 |
| Suicide is not considered a/an | accident |
| Contestable period is this many years | 2 |
| Suicide will not be covered if it occurs during | the incontestable period |
| when a misrepresntation on a life ins. policy is discovered | void the policy if discovered during the conestable period and it's proven to be materialthe Contestable |
| The Icontestable period starts | after the contestable period ends |
| an insured can void a policy during the contestable period if | misrepresentations found to be material |
| Entire contract provision 1 | cant change the terms of the contract with the policyowner by referring to documents not found within the policy itself |
| Entire contract provision 2 | the producer does not have the authority to change the policy or waive any of its provisions |
| Entire contract provision 3 | application is part of the contract |
| Entire contract provision 4 | says that the ins. company must attach a copy of the application to the policy |
| Exclusion | insurer refuses to cover certain risks |
| Exclusions specify | conditions, times and circumstances under which the insured is not covered |
| Common exclusions include | intoxicants/narcotics, war, aviation, felony, suicide |
| if an insured has a claim made during an exclusion | the insurance co. will not pay the claim but insured can keep the policy |
| pilots of small aircrafts are | not covered |
| commercial airline pilots are | covered |
| exclusions for war cover | losses during active duty |
| excusions for war don't apply | a soldier is not in active duty |
| Guaranteed Insurability Option | person has the option to purchase additional insurance later in life |
| insured's attained age is used to decide on preiums in | Guaranteed Insurability Option |
| evidence of insurability | this does NOT have to be provided if you have a Guaranteed Insurability Option and apply for addiitonal insurance |
| Guaranteed Insurability Options allows the insured to | buy addiitonal coverage at a later date |
| Future Increase Option is also called a | Guaranteed Insurability Option |
| with a guaranteed insurability option | the insured would need to get the same kind of coverage in the future |
| Guaranteed Insurability Options offer more insurance when? | at specified future dates |
| Payor provision | insurance premiums don't need to be paid if the payor dies or becomes disabled |
| Payor clause on juvenile life policy allows | previums to be waived is payor becomes disabled |
| Another name for payor clause | payor provision |
| payor provision does not | provide additional money to the juvenile |
| Reinstatement provision | coverage may be restored if the ins. co. accepts payment after due |
| puts the policy back in force after a lapse in payment | Reinstatment provisions |
| The insured needs to provide the ins. co. during a reinstatement provison | pay all past due premiums & have a statement of good health/proof of insurability |
| # of days company has to approve or deny a reinstatement appication | 45 days |
| if ins. company doesn't notify the insured of decision on a reinstatment applicaiont within 45 days | the policy is reinstated |
| waiver of premium keeps coverage in force wihtout payments | after an insured has become totally disabled as defined in the policy |
| preimiums can be waived under waiver of premium if the disaibility is | as defined in the policy |
| after the insured becomes totally disabled after a period of time | Waiver of premium provision allows for |
| if insured has premiums waived due to disability | insured can still receive dividends |
| Waiver of premium only affects | the premiums, not coverage or dividends |
| Waiver of Premium does not require this | determination of Social Security Disability |
| 20 pay life accumulates cash value faster than | Straight Life |
| Automatic Policy Loan | policy has adequate cash value to pay the premium |
| Automatic Policy Loan is also called | Automatic Premium Loan |
| Cannot have an automatic policy loan | Decreasing Term |
| Term life insurance has no | cash value |
| Cash value | Whole Life poliicies have |
| Face Amount plus Cash Value Policy pays at death | Face amount plus cash value |
| Nonforfeiture options: | cash surrender, reduced paid up, extended term |
| NOT a Nonforfeiture option | life income |
| with cash surrender | take the cash and run |
| reduced paid up | keep policy for the rest of your life and never make another payment |
| extended term | keep face value for an extended period of time and never make a payment |
| nonforfeiture opitons | end the current policy |
| continues to build-up cash value | reduced paid-up |
| Policy loan provision | allows for interest to be charged on the loan |
| an insured can borrow | up to the value of the cash value |
| Paid Up Additional Insurance | provides an incresaing death benefit |
| how much insurance can be obtained with dividends used for paid up additional insurance can be affected by | insured's attained age |
| autopsy can be per | cause of death is unknown, when foul play was a contributing factor, without consent |
| autopsy cannot be performed | if prohibited by law |
| consent for autopsy is obtained | at the time the contract is signed |
| return of premium rider | the ins. company pays out the death benefit plus all the premiums |
| accelerated death benefits | are paid if the patient has a terminal illness |
