Free Life Policy Provisions Options and Riders Practice Questions
Hawaii Life exam — 164 practice questions.
Subtopics: Grace period, Free look, Incontestability, Reinstatement, Automatic premium loan, Suicide exclusion, Misstatement of age, Entire contract, Cash surrender, Reduced paid-up, Extended term, Waiver of premium, Accidental death, Guaranteed insurability, Settlement option, Death during grace, Reinstatement conditions, Reinstatement interest, Incontestability scope, Incontestable vs. exclusions, Contestability after reinstatement, Participation in surplus, Dividend options, Policy loan interest, Adjustable loan rate, Loan deferral, Excess loans, Permitted exclusions, Excluded death payment, Time to sue, Creditor protection, Creditor protection limit, Spendthrift settlement, Group life exemption, Interest on proceeds, Free look exam costs, Free look exceptions, Spouses' rights, Group life grace period, Group incontestability, Facility of payment, Group conversion, Group conversion premium, Conversion on plan termination, Death during conversion period, Conversion notice, Group assignment, Unclaimed benefits, 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, Policy 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. The provision giving a life policyowner additional time after the premium due date to pay before the policy lapses is the:
Grace period
The grace period keeps the policy in force after the due date; Hawaii requires a thirty-day grace period in individual life policies.
2. The free-look provision of a life insurance policy allows the policyowner to:
Return it within 10 days for a full premium refund
Hawaii requires individual life policies to carry a notice that the purchaser may return the policy within ten days of receipt and have the premium refunded.
3. Under Hawaii law, an individual life policy becomes incontestable (except for nonpayment of premiums) after it has been in force during the insured's lifetime for:
Two years from its date of issue
Hawaii requires the policy, apart from disability and accidental death provisions, to be incontestable except for nonpayment of premiums after two years in force during the insured's lifetime.
4. Under Hawaii's required reinstatement provision, a lapsed life policy that was not surrendered for cash may be reinstated within what period after premium default?
Three years
A lapsed policy may be reinstated within three years of premium default (unless surrendered or extended term has expired) with evidence of insurability and payment of arrears 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.
