Life Insurance Policies and Contracts

What does a single premium policy mean?

A fixed amount added to the premium of a given policy regardless of policy size is known as?

To calculate the required premiums for a given policy, the agent must know the applicant’s?

To calculate premiums for the other modes of premium payment, the annual premium is?

Benefits payable under health insurance policies cover?

With employer-employee groups, an employee does not fill out a personal application for insurance. Instead, he fills out?

In the event an employee leaves the company in which he is a member of its group insurance policy, his group coverage can be changed to an individual policy using?

For a contract to be legal and binding, which of the following must be true?

A father enters into a life insurance contract on behalf of his child. In this case, the father is the?

For life insurance coverage to be valid, insurable interest must exist?

The insurance code specifies that a contract does not take effect unless?

All of the following would be practicable to become beneficiaries except?

Under the law pertaining to life insurance, which statement is true?

When the proceeds of a life insurance policy are left with the company to earn interest,?

A person has insurable interest in the life of?

Anybody can be designated a beneficiary except?

The common practice of most life insurers is that the life insurance goes into force when?

Life Insurance Policies

A single premium policy requires only one premium payment.
A policy fee is a fixed amount added to the premium regardless of the policy size.
To calculate premiums, agents need the applicant's age, plan choice, and desired face amount.
The annual premium can be divided by a conversion factor to calculate premiums for different payment modes.
Health insurance covers accidental death and dismemberment, expense reimbursement, and disability income benefits.
In employer-employee groups, employees fill out enrollment cards instead of personal applications.
Employees leaving a company can convert their group coverage to an individual policy using the conversion privilege.
A contract is legal and binding when parties are legally competent.
In a life insurance contract with a child, the father is the applicant-owner.
Insurable interest must exist at the time of policy issuance and at the time of any loan.

Life Insurance Contracts

A life insurance contract takes effect when the first premium is paid and the policy is delivered.
Anyone with insurable interest can be named an irrevocable beneficiary, including children by former marriage, brothers, and sisters.
The proceeds left with the company to earn interest are subject to income tax on the interest earnings.
You can have an insurable interest in the life of your child or grandchild, anyone you are dependent on, anyone who provides you support or education, and anyone in whom you have pecuniary interest.
Minors and those prohibited by law from receiving donations cannot be designated as beneficiaries.

Common Practices

Life insurance typically goes into force when the policy is delivered to the applicant.

Test your knowledge on life insurance policies and contracts with this quiz. Learn about premium payments, policy fees, insurable interest, and more. Perfect for students and professionals looking to deepen their understanding of life insurance concepts.