Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
Title Page
|
identifies the insurance company and the policyowner.
|
|
|
Insuring Clause
|
he basic agreement between the policyowner and the company, is found on the schedule of benefits page
|
|
|
Entire Contract
|
states that the insurance policy and the completed (signed) application make up the entire contract.
|
|
|
Ownership Rights
|
A life insurance policy is property, and policyowners have certain rights regarding the policy.
|
|
|
Assignment
|
A policyowner can pledge or transfer ownership of a life insurance policy
|
|
|
Consideration
|
3 elements. offer, acceptance, consideration
|
|
|
Free Look
|
The free-look period begins when the policy is delivered to the owner.
|
|
|
What is the shortest free look period allowed by law?
|
10 days
|
|
|
How long is the typical grace period?
|
31 days
|
|
|
reinstatement provision
|
lets the policyowner place a lapsed policy back in force if done within a specified period of time. usually 3 years. The policy owner must provide:
a written request or application for reinstatement; proof of insurability; and payment of all back premiums plus interest. |
|
|
incontestability clause
|
the insurer cannot contest a claim nor void a policy for any reason except for nonpayment of premium after two years.
|
|
|
Misstatement of Age or Sex
|
It is not grounds for voiding the policy, even if the misstatement is discovered during the contestable period.
|
|
|
warranties
|
Statements the policyowner makes in the application are representations.
|
|
|
Per Stirpes
|
Death benefit proceeds are shared equally by a class or group of individuals (e.g., the insured’s adult children, or the insured’s brother and sister, or the insured’s friends Tom, Dick, and Harry), and if one of them predeceases the insured, then his or her share passes down to his or her children (if any).
|
|
|
Per Capita
|
Death benefit proceeds are shared equally by a class or group of individuals
|
|
|
Common Disaster Provision
|
his provision identifies how the policy's proceeds will be paid if the insured and the primary beneficiary die at the same time
|
