Free Types of Life Insurance Policies Study Guide
North Dakota Life exam — Types of Life Insurance Policies.
Term, whole, universal and variable life, and the general features of group and credit life, are covered in the national Types of Life Insurance Policies guide. North Dakota's Life exam adds the group life standard provisions in N.D.C.C. 26.1-33-11 and 26.1-33-12, and the licensing rule for variable products.
Group life standard provisions (26.1-33-11)
| Provision | North Dakota rule |
|---|---|
| Grace period | 31 days. Death benefit coverage continues during the grace period |
| Incontestability | After two years, validity can't be contested except for nonpayment of premium |
| Facility of payment | Up to $5,000 may be paid to someone who covered funeral or last-illness expenses |
| Certificates | Each insured gets a certificate describing the coverage, any dependent coverage and conversion rights |
| Conversion when employment ends | An individual policy without evidence of insurability if the application and first premium are made within 31 days. The premium is the insurer's customary rate for the person's attained age and class |
| Conversion when the group policy ends | The converted amount may be limited to the lesser of the coverage ending or $10,000 |
| Death during the conversion period | The amount the person could have converted is paid as a group claim |
| Total disability | Coverage continues on a premium-paying basis for six months from the start of disability, unless approved sooner under a disability provision or the plan ends |
Late notice of conversion rights (26.1-33-12). If the insured isn't told of the conversion right in time, the conversion period is extended to 15 days after notice is given.
Newborns (26.1-33-12.1). A group policy may impose a waiting period for newborn dependent coverage only if its existence and length are prominently disclosed to the certificate holder.
Variable life and annuities
- Variable life and variable annuities are a separate line of authority from life.
- An applicant must first be licensed as a securities salesman. The qualifying insurance exam is the life exam (N.D. Admin. Code 45-02-02-11).
- The life line covers fixed and indexed annuities without a securities license (26.1-26-11).
Other definitions you may see
- An insurance contract is an undertaking to indemnify against loss, damage or liability from an unknown or contingent event (26.1-29-01).
- Parties must disclose in good faith the material facts the other side has no means of ascertaining (26.1-29-13).
- Concealment, intentional or not, allows rescission (26.1-29-14, 26.1-29-15).
- A representation may be changed or withdrawn before the insurance takes effect, but not afterward (26.1-29-28).
Common exam traps
- Group life conversion: 31 days, no evidence of insurability, at attained-age rates. If notice comes late, there are 15 days after notice.
- The group facility-of-payment amount is $5,000.
- Group life continues for six months during an insured's total disability.
- Variable products require a securities license first.
Practice Types of Life Insurance Policies questions All Life topics
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.
