Free Life Policy Provisions Options and Riders Practice Questions
Alabama Life exam — 148 practice questions.
Subtopics: Free look, Grace period, Incontestability, Reinstatement, Entire contract, Nonforfeiture, Extended term, Reduced paid-up, Policy loan, Waiver of premium, Accidental death, Guaranteed insurability, Settlement options, Beneficiary designation, Misstatement of age, Grace period claim, Incontestability exclusions, Reinstated policy contestability, Misstatement of age or sex, Dividends, Policy loans, Policy loan termination, Policy loan interest, Death claim settlement, Interest on death claims, Premium increases, Suicide exclusion, Permitted exclusions, Excluded death benefit, Nonforfeiture election, Cash surrender value, Automatic nonforfeiture option, Ownership, Assignment, Collateral assignment, Suicide clause, Beneficiary primary, Contingent beneficiary, Revocable beneficiary, Irrevocable beneficiary, Per stirpes, Common disaster, Spendthrift clause, Settlement lump sum, Interest only, Life income option, Fixed period option, Fixed amount option, Cash surrender, Automatic premium loan, Partial withdrawal, Dividends not guaranteed, Paid-up additions, Accumulation at interest, Reduction of premium, Payor benefit, Accidental death rider, Cost of living rider, Long-term care rider, Spouse and child riders, Aviation exclusion, War exclusion, Retained asset account, Incontestability clause, Cash surrender value option, Surrender charge, Maturity date provision, Policy loan interest rate, Cash value deferment clause, Change of plan provision, Exchange privilege, One-year term dividend option, Cash dividend option, Per capita designation, Minor beneficiary, Estate as beneficiary, Class designation, Facility-of-payment clause, Uniform Simultaneous Death Act, Survivorship time clause, Changing the beneficiary, Accelerated death benefit rider, Disability income rider, Return of premium rider, Waiver of monthly deduction rider, Critical illness rider, Term insurance rider, Accidental death and dismemberment rider, Hazardous occupation exclusion, Commission-of-a-felony exclusion, Hazardous hobby exclusion, Default nonforfeiture option, Guaranteed policy loan value, Contestable period after reinstatement, Assignment notification, Third-party ownership, Automatic dividend application, Creditor protection of proceeds, Trust as beneficiary, Owner's right to dividends, Contingent owner, Net cash surrender value, Accidental death benefit, Incontestable exception, Incontestable typical period, Grace period standard, Grace period length, Reinstatement window, Reinstatement advantage, Suicide clause period, Misstatement of sex, Free look refund, Change of beneficiary, Primary beneficiaries share, Tertiary beneficiary, No beneficiary living, Settlement interest taxation, Life income period certain, Settlement option choice, Extended term duration, Nonforfeiture purpose, Policy loan unpaid lapse, Automatic premium loan election, Dividend options default, Accelerated benefit effect, Accelerated benefit tax, Chronic illness rider, Waiver of premium waiting, Guaranteed insurability options, ADB time limit, Accidental death exclusions, Other insured rider conversion, Assignment and beneficiary, Payor rider ends
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. A free-look (right to examine) provision in a life policy lets the owner:
Examine the policy and return it for a refund within the stated period
A free-look provision lets the owner examine the policy and return it for a refund within the stated period. In Alabama a replacement policy must allow 30 days, and the Buyer's Guide may be delivered with the policy only if it has an unconditional refund provision of at least 10 days.
2. The grace period in a life insurance policy:
Allows payment of an overdue premium without lapse for a stated time
The grace period allows a late premium to be paid within a stated time without the policy lapsing.
3. Once an Alabama life policy has been in force during the insured's lifetime for two years from its issue date, the insurer generally:
Cannot contest the policy except for nonpayment or other stated exceptions
Alabama requires life policies to be incontestable, except for nonpayment of premiums, after two years in force during the insured's lifetime.
4. To reinstate a lapsed whole life policy, the owner generally must:
Provide evidence of insurability and pay back premiums with interest
Alabama requires reinstatement within three years after default on written application, evidence of insurability, and payment of overdue premiums and indebtedness with interest.
Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
