Life Insurance Policy, Provision, Options, And Riders

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| By Cshawnpujol
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Cshawnpujol
Community Contributor
Quizzes Created: 1 | Total Attempts: 245
| Attempts: 247
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  • 1/12 Questions

    Per stripes means by the bloodline which distributes the benefits of a beneficiary who died before the insured to that beneficiary's heirs.

    • True
    • False
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About This Quiz

Explore key aspects of life insurance policies, including provisions, ownership types, and assignments. Learn who is responsible for premiums, the implications of third-party ownership, and how to reinstate a lapsed policy. Ideal for enhancing understanding of policy management and legal frameworks.

Life Insurance Quizzes & Trivia

Quiz Preview

  • 2. 

    Ths person is responsibile for paying the policy premuim and must have an unsurable interest in the insured at the time of the application.

    • Third-party owner

    • Absolute assigner

    • Rider

    • Policyowner

    Correct Answer
    A. Policyowner
    Explanation
    The policyowner is the person responsible for paying the policy premium and must have an insurable interest in the insured at the time of the application. They have the authority to make changes to the policy, such as adding or removing riders, and they are the ones who receive the policy benefits in the event of the insured's death or other covered events. The policyowner has the ultimate control over the policy and is the one who holds the rights and responsibilities associated with it.

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  • 3. 

    Policies may be backdated __________ months to effect a lower premium.

    Correct Answer
    six
    6
    Explanation
    Policies may be backdated for a period of six months in order to achieve a lower premium. This means that the policy can be made effective from a date up to six months in the past, allowing the policyholder to take advantage of lower rates during that period. Backdating the policy allows for potential cost savings and is a common practice in insurance.

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  • 4. 

    The policyowner does not need to insruer's permission to assign the policy, but has to advise the insurer in writing of the assignment.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The policyowner has the right to assign the policy without seeking permission from the insurer. However, they are required to inform the insurer in writing about the assignment. This allows the insurer to update their records and acknowledge the change in ownership. Therefore, the statement is true.

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  • 5. 

    _______________________ allows policyowner an opportunity to put a lapsed policy back in force (subect to proving insurability).  Max time limit is 3 years after the policy has lapsed.

    Correct Answer
    Reinstatement
    Explanation
    Reinstatement allows a policyowner to restore a lapsed policy by proving insurability. This means that if a policy has lapsed, the policyowner has the option to bring it back into force within a maximum time limit of 3 years. During the reinstatement process, the policyowner will need to provide evidence of their insurability, such as submitting a new application or undergoing a medical examination. Reinstatement allows the policyowner to continue the coverage and benefits of the policy as if it had never lapsed.

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  • 6. 

    When the owner and the insured are not the same person it is ___________ ownership.

    Correct Answer
    third-party
    third party
    Explanation
    When the owner and the insured are not the same person, it is referred to as third-party ownership. This means that someone other than the owner of the property or asset is responsible for insuring it. In this case, the third party takes on the role of the insured and is responsible for any claims or damages that may occur. This type of ownership arrangement is common in situations where the owner of the property or asset is not able or willing to insure it themselves.

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  • 7. 

    Incontestability does apply to statemnt relating to age, sex, and identity after the plicy has been in force for 2 years.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Incontestability does not apply to statements relating to age, sex, and identity after the policy has been in force for 2 years. This means that even after 2 years, the insurance company can contest or challenge the accuracy of these statements.

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  • 8. 

    All death claims under insurance policies in the state of Louisiana must be settled by the insurer within 60 days after the receipt of proof of death.  After 60 days, ____ percent interest will be assessed on the claim.

    Correct Answer
    8
    eight
    Explanation
    After 60 days, 8 percent interest will be assessed on the claim.

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  • 9. 

    ________________________ is an example of an exclusion

    Correct Answer
    Aviation
    Hazardous Occupations
    Hazardous Hobbies
    Hazardous Occupation
    Hazardous Hobby
    Explanation
    Aviation, hazardous occupations, and hazardous hobbies are all examples of exclusions. These are activities or occupations that are specifically excluded from certain insurance policies or coverage due to the increased risk they pose. In the context of insurance, exclusions are limitations or restrictions on what is covered by the policy, and these activities are considered too high-risk to be included in the coverage. Therefore, they are listed as exclusions to ensure that the insurance company is not liable for any damages or losses resulting from these activities.

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  • 10. 

    What is a provision?

  • 11. 

    What is the difference between absolute assignment and collateral assignment?

  • 12. 

    Per capita is by the head which means....

Quiz Review Timeline (Updated): Mar 20, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 13, 2011
    Quiz Created by
    Cshawnpujol
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