Free Life Policy Provisions Options and Riders Practice Questions
Vermont Life exam (series 14-25) — 155 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, Misrepresentation, Payment of claims, Interest on death benefits, Policy loans, Dividends, Settlement of claims, Cancellation notice for seniors, Secondary addressee, Assignment, Spendthrift clause, Replacement, Long-term care riders, Ownership, Collateral assignment, Beneficiary primary, Contingent beneficiary, Revocable beneficiary, Irrevocable beneficiary, Per stirpes, Common disaster, Settlement lump sum, Interest only, Life income option, Fixed period option, Fixed amount option, Automatic premium loan, 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 a period after the premium due date to pay without the policy lapsing is the:
Grace period
The grace period allows the owner additional time after the due date to pay a premium before the policy lapses.
2. The free-look provision in a Vermont life insurance policy allows the policyowner to:
Return the policy within a set number of days for a full 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. After a life policy has been in force for the contestable period, the incontestability clause generally prevents the insurer from:
Contesting the policy for most misstatements
Once the contestable period passes, the insurer generally cannot contest the policy for misstatements, subject to limited exceptions such as fraud.
4. To reinstate a lapsed life insurance policy, the insurer typically requires:
Payment of back premiums with interest and evidence of insurability
Reinstatement generally requires payment of overdue premiums with interest and proof of insurability.
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.
