Lifeexam-Ch2

Front 1

rider

Back 1

endoresemnt to policy that modifies contract provisions. normally increase benefits

Front 2

provisions - entire contract

Back 2

policy plus any riders and copy of the application

Front 3

provisions - insuring clause

Back 3

who is insured by whom and the amount of benefit provided.

Front 4

provisions - free look(right to examine)

Back 4

insured/owner spceified days to look over(usually10) and return with refund of premiums

Front 5

provisions - consideration

Back 5

owner pays premiums in exchange for benefits

Front 6

provisions - owners rights(ownership)

Back 6

right to all cash values, loans, dividends and any other, change beneficiary

Front 7

provisions - changes(modifications)

Back 7

in writing, signed by officer or the insurer, approved by owner and made part of contract. agent CANNOT alter waive provisions

Front 8

provisions - payment of premiums(3)

Back 8

1. mode of premiums
2. grace period
3. automatic premium loans

Front 9

mode or premium

Back 9

when premiums are due, frequency and to whom. more frequent GREATER cost

Front 10

grace period

Back 10

after premium due date and before lapse(30/31days). if insured dies - benefit paid less premiums due

Front 11

automatic premium outlay

Back 11

insurer to automatically borrow from cash value to cover a premium payment to prevent lapse. effective after grace period, treated as loan, on cash value policies only.

Front 12

provisions - reinstatment

Back 12

insured to pay back premiums plus interest adn prove insurability if policy was not surrendered for cash value. 3 years from start of lapsed status

Front 13

provisions - policy loan rate provisions

Back 13

fixed policies maximum fixed i rate of 8%. variable policies based off of Moody's corp bond. loan CANNOT exceed cash value. interest not paid added to total debt

Front 14

provisions - partial withdrawals or surrenders

Back 14

partial withdrawal of cash value OK with variable, universal (flexible). partial or full surrender also allowed. in early years insurer may apply surrender charge agasint cash being surrendered.

Front 15

provisions - incontestability

Back 15

state where insurere CANNOT contest statmetns made in policy after been affect for 2 years**

Front 16

provisions - assignment

Back 16

transfer of ownership to another party. 2 types - collateral(partial) and absolute(full face). can reduce beneficary claim b/c assingment paid first

Front 17

provisions - suicide

Back 17

suicide committed within time (2yrs) insurere liablity is refund of premiums only

Front 18

provisions - misstatment age/gender

Back 18

allows insurer at time of claim to adjust benefits accordingly to premiums that woudl have been purchased. NEVER cancels or voids policy. incontest does not apply

Front 19

provisions - conversion option

Back 19

convert to some other type of policy. term to whole

Front 20

Exclusions

Back 20

insurer will not provide coverage
1. aviation
2. status clause(military)
3. results(war)
4. hazardous(stunt)

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policy provisions prohibited(5)

Back 21

1. NO legal actio to less than 1 year
2. no backdating except to converve age of child. no more than 6 months
3. no settlement less than face at maturity
4. agent CANT be representive of insured
5. no contract forfeiture with outstandling loan less than loan value

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types of beneficary provisions 2

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1. revocable - change beneficary at any time
2. irrevocable - not change beneficary or transfer ownership. beneficary HAS VESTED interest.

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beneficary succsion 3

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1. primary
2. contingent
3. tertiary.
INSURER CANNOT designate beneficary

Front 24

beneficiary desgination options

Back 24

at time of applicaiton. change request in writing

Front 25

desgination options - invidiual named

Back 25

specific name

Front 26

designation options - class

Back 26

when beneficary is not directly identified(minors). percapita - per person or per stirpes - per benefiicary

Front 27

designation options estate

Back 27

unnamed tertiary

Front 28

designation optiosn trust

Back 28

when recipeint does not have direct access to death benefit.

Front 29

designation options credit

Back 29

named at applicatio to cover indebtness. person get some of the death benefit if loans outstanding

Front 30

beneficary provisio - common disaster clause

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cant be determined whether insured or prim beneficary died, insured assumed to have survied and benefits paid to estate

Front 31

beneficary provisions - spendthrift clause

Back 31

denies the beneficary right to alienate interest in the policy proceeds. prevent creditors to getting money prior to beneficary getting it

Front 32

beneficary provisions - change of insured

Back 32

corporate owned life insurance when they move. changes the insured, removes new policy loading, proof of insurability

Front 33

beneficary provisions - annulment and divorce

Back 33

insurance is considered a form of property in divorce. owner of policy has right to name beneficary