Free Life Policy Provisions Options and Riders Practice Questions
South Dakota Life exam — 141 practice questions.
Subtopics: Grace period, Incontestability, Suicide clause, Reinstatement, Policy loan, Nonforfeiture options, Dividend options, Waiver of premium, Accidental death, Guaranteed insurability, Automatic premium loan, Change of beneficiary, Entire contract, Accelerated death benefit, Free look, Replacement free look, Suicide exclusion, Permitted exclusions, War exclusion, Policy loans, Interest on proceeds, Misstatement of age, Assignment, Ownership, 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, 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, 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, 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 grace period provision in a life insurance policy:
Allows time after the due date to pay before the policy lapses
The grace period keeps the policy in force for a stated time after the due date; South Dakota requires 30 days for individual life policies (SDCL 58-15-13).
2. After a life policy has been in force beyond the incontestability period, the insurer generally:
Generally cannot contest it for application misstatements
South Dakota requires life policies to become incontestable, except for nonpayment of premiums or fraud, after two years in force during the insured's lifetime (SDCL 58-15-10).
3. Under a typical suicide clause, if the insured dies by suicide within the stated period, the insurer will generally:
Return the premiums paid instead of the face amount
South Dakota permits a suicide exclusion only within two years of issue, and a policy using it must return all premiums received, adjusted for indebtedness and dividend credits (SDCL 58-15-45, 58-15-46).
4. To reinstate a lapsed whole life policy, the insurer generally requires the owner to:
Pay overdue premiums with interest and prove insurability
SDCL 58-15-22 requires reinstatement within three years of default on written application, evidence of insurability satisfactory to the insurer, and payment of premiums in arrears and other 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.
