Life Insurance Policy, Provision, Options, And Riders

Per stripes is a legal term that refers to the distribution of benefits to the heirs of a beneficiary who has passed away before the insured. It ensures that the deceased beneficiary's share is passed on to their own heirs, rather than being forfeited. This distribution is done by bloodline, meaning that the deceased beneficiary's share is divided equally among their descendants. Therefore, the statement is true as per stripes ensures the fair distribution of benefits to the heirs of a deceased beneficiary.

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.

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.

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.

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.

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.

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.

After 60 days, 8 percent interest will be assessed on the claim.

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.