Free Life Policy Provisions Options and Riders Practice Questions
North Carolina Life exam — 128 practice questions.
Subtopics: Grace period, Incontestability, Reinstatement, Misstatement of age, Nonforfeiture, Waiver of premium, Accelerated benefit, Settlement options, Beneficiary designation, Policy loan, Suicide clause, Reinstatement period, Contestability after reinstatement, Interest on death claims, Proceeds and creditors, Lapse notice, Policy loan interest, Entire contract, 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, Cash surrender, Reduced paid-up, Extended term, Automatic premium loan, Partial withdrawal, Dividends not guaranteed, Paid-up additions, Accumulation at interest, Reduction of premium, Payor benefit, Accidental death rider, Guaranteed insurability, 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. North Carolina individual life policies generally must include a grace period for premium payment of at least:
31 days
Every individual life policy delivered in North Carolina must allow a 31-day grace period for each premium after the first, with the death benefit remaining in force; an unpaid premium may be deducted from a claim paid during the grace period.
2. The incontestability provision generally prevents an insurer from contesting a life policy for misstatements after the policy has been in force for:
Two years during the insured's lifetime
North Carolina requires the policy to become incontestable, except for nonpayment of premium, after it has been in force for two years from issue; statements about insurability cannot be used to contest it after two years during the insured's lifetime.
3. Which provision allows a lapsed life policy to be restored if the owner provides evidence of insurability and pays back premiums with interest?
Reinstatement provision
North Carolina requires that a lapsed individual life policy (not surrendered for cash) be reinstatable within five years after premium default upon written application, satisfactory evidence of insurability, and payment of overdue premiums and other indebtedness with interest.
4. Under the misstatement of age provision, if an insured's age was understated, the death benefit will be:
Adjusted to what the premium would have purchased at the correct age
North Carolina requires an equitable adjustment of premiums or benefits when age or gender is misstated; the usual method pays the amount the premium paid would have bought at the correct age.
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.
