Questions and Answers
Upon meeting company requirements, a lapsed life insurance policy may be reinstated within ___ years.
3
Study Notes
Life Insurance Policy Rights
- A policyowner cannot revoke an absolute assignment of the life insurance policy.
- Beneficiaries have specific rights, but certain actions, like revoking an assignment, are restricted.
Beneficiary and Insured Relationship
- If a beneficiary dies in the same accident as the insured, the insurer treats it as if the insured outlived the beneficiary.
Risk Assessment in Insurance
- Applicants with a below-average likelihood of loss are categorized as preferred risks, considered less likely to file claims.
Reinstatement of Lapsed Policies
- A lapsed life insurance policy may be reinstated within three years if the insurer's requirements are met.
Changes in Occupation and Insurance
- If an insured takes on a more hazardous occupation, the change of occupation provision in the disability policy allows the insurer to adjust benefits and rates accordingly.
Activation of Reinstatement Clause
- To activate the reinstatement clause for a lapsed life insurance policy, insured individuals must provide evidence of insurability to the insurer.
Annuity Growth Phases
- Annuities in tax-deferred growth, like Kathy's, are in the accumulation period until retirement.
Ownership Evidence in Insurance
- Ownership in a participating health insurance contract is evidenced by policy ownership, which grants rights and responsibilities.
Types of Insurance Groups
- An association or labor group is defined as a type of group formed for purposes other than obtaining insurance, having official structures like constitutions and bylaws.
Juvenile Insurance and Payor Benefit Rider
- Juvenile insurance is typically associated with a payor benefit rider, providing coverage to children under specific circumstances.
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Description
This quiz covers essential aspects of life insurance policies, including policy rights, beneficiary relationships, and risk assessment. You'll also explore reinstatement of lapsed policies and implications of changes in occupation. Test your understanding of these vital insurance principles!