Often asked: Which Of The Following Statements Pertaining To A Life Insurance Policy Application Is Not Correct?

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What are statements made in a life insurance application?

The statements made by the applicant on an application for insurance are considered to be representations.

What is not true concerning insurable interest as it applies to life insurance?

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Question Answer
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? A debtor has an insurable interest in the life of a lender.

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Which of the following is stated in the consideration clause of a life insurance policy?

Which of the following is stated in the consideration clause of a life insurance policy? The consideration clause specifies the amount and frequency of premium payments that the policyowner must make to keep the insurance in force.

In which of the following circumstances would the incontestable clause of an insurance policy apply?

In which of the following circumstances would the incontestable clause of an insurance policy apply? After a policy has been in force for the specified term, the insurer cannot contest a death claim or refuse payment of proceeds for a concealment of smoking.

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What will disqualify you from life insurance?

Their reasons could be anything from a serious medical condition (like heart disease) or poor results from your life insurance medical exam to nonmedical reasons like bankruptcy, a criminal record, a positive drug test or even a dangerous hobby.

Can life insurance ask for medical records?

Life insurance companies may only access your medical records if you provide written consent. If you grant permission, they can see a variety of information, including: Doctor visits – the reason and the diagnosis. Any prescribed medications.

What is proof of insurable interest?

In life insurance, proof of insurable interest is required during the application and purchase of a policy. Life insurance is a tool used to make you whole again following the financial loss of someone. They will investigate the relationship to the proposed insured and evaluate if there is an insurable interest.

What is not considered an insurable interest?

People not subject to financial loss do not have an insurable interest. Therefore a person or entity cannot purchase an insurance policy to cover themselves if they are not actually subject to the risk of financial loss.

What are the two components of a universal policy?

How Does Universal Life Insurance Work? Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value.

Where are policy benefits found?

Policy benefits can be found in the policy brochure or the policy wordings. The policy brochure will have all the benefits listed in short and the policy wordings will 13 answers · 0 votes: A broad description of the benefits is found in the section that is generically called the (8)

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What benefit does the payer clause?

The Payor clause of an insurance policy on a juvenile provides which of the following benefits? Answer: “A waiver of premiums if the payor becomes disabled”. The Payor clause of a juvenile life policy provides a waiver of premiums if the payor becomes disabled.

What is the insuring clause?

In insurance: Liability insurance. One is the insuring clause, in which the insurer agrees to pay on behalf of the insured all sums that the insured shall become legally obligated to pay as damages because of bodily injury, sickness or disease, wrongful death, or injury to another person’s property.

What is an example of rebating?

An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.

How long does it take before the policy becomes incontestable?

Most incontestability clauses include a provision stating that the two or three year period that covers the contestability period must be completed within the lifetime of the policyholder.

What is contestability clause?

Contestable Clause — the portion of a life insurance policy setting forth the conditions under which an insurer may contest or void the policy.

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