Free Life Policy Provisions Options and Riders Practice Questions
Montana Life exam — 152 practice questions.
Subtopics: Grace period, Free look, Incontestability, Reinstatement, Suicide clause, Misstatement of age, Entire contract, Cash surrender, Reduced paid-up, Extended term, Dividend options, Waiver of premium, Accidental death, Guaranteed insurability, Automatic premium loan, Claim settlement, Exclusions, Policy loans, Lapse notice, Standard provisions, Illustrations, Replacement, Ownership, Assignment, Collateral assignment, 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 that gives a life policyowner time after the premium due date to pay without the policy lapsing is the:
Grace period
Montana requires a life policy grace period of 30 days, or at the insurer's option 1 month of not less than 30 days.
2. The free-look provision in a life insurance policy allows the policyowner to:
Return the policy within a set period for a refund
The free-look period lets the owner examine the policy and return it for a full premium refund within the stated number of days.
3. Under Montana law, once a life policy has been in force during the insured's lifetime for 2 years from its issue date, the insurer may contest it only for:
Nonpayment of premiums
Montana's required incontestable clause makes the policy incontestable after 2 years, except for nonpayment of premiums; disability and accidental death provisions may be excluded from the clause.
4. To reinstate a lapsed life insurance policy, the insurer typically requires:
Back premiums with interest and evidence of insurability
Montana's reinstatement provision requires written application, evidence of insurability, and payment of premiums in arrears with interest (not over 6%), within 3 years of default.
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.
