What are the key provisions in a life insurance policy?

What are the 5 parts of an insurance policy?

Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements.

What are the 6 elements of an insurance policy?

These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution. In addition, there is a very important legal difference between a reserve and an insurance company.

Which of these provisions is not required in life insurance policies quizlet?

Which provision is NOT a requirement in a group life policy? Accidental". An AD&D provision is not required in a group life policy.

What is life insurance and its purpose?

It insures an individual against the risk of financial loss in case of death. It does not include a savings plan; it is strictly an insurance protection contract, similar to auto, home, or health insurance. The owner buys a certain amount of coverage and pays an annual premium based on the insured's age.

What are the four methods of determining life insurance needs?

We look at four methods—human life value, income replacement value, expense replacement method and underwriter's thumb rule—that can help you calculate how much life cover you need. This method considers the economic value or human life value (HLV) of a person to the family.

What is standard policy provision?

Definition of standard provisions, life insurance

Standard provisions include the beneficiary; grace period; incontestable clause; nonforfeitability (cash surrender benefit, reduced paid-up benefit, extended term benefit); policy loan reinstatement; suicide clause; war exclusion clause.

Which provision states that the insurance company?

Which provision states that the insurance company must pay claims immediately? Answer D is correct. Time of Payment of Claims (a Mandatory Uniform Provision) stipulates that claims are to be paid immediately upon written proof of loss.

What provision in a life or health insurance policy extends coverage beyond the premium due date?

What provision in a insurance policy extends coverage beyond the premium due date? Grace period. Grace period is a mandatory provision found in all life and health insurance policies that provides coverage for a period of time after the premium becomes past due.

Which provision of a life insurance policy states the insurer's duty to pay benefits?

The insuring clause contains the insurer's promise to pay benefits in the event of a covered loss.

What are the three basic functions of a life insurance company?

Which provision will pay a portion of the death benefit?

An Accelerated Death Benefit provision in a life insurance policy provides that the life insurance company will pay a portion of the death benefit of a policy, before the insured's death occurs. To receive this benefit, the insured must be diagnosed with a life threatening illness.

What are the four benefits of insurance?

Which of the following is not required provision in group life policies?

Which provision is NOT a requirement in a group life policy? An AD&D provision is not required in a group life policy. The correct answer is "the entire cost of the plan is paid for by the employer".

Which provision prevents an insurer from changing the terms?

The incontestability clause in life insurance policies is one of the strongest protections for a policyholder or beneficiary.

What are the three primary elements in life insurance rate making?

In rate making, three basic requirements must be met: rates must be adequate to cover expected losses, must not be excessive, and must not be unfairly discriminatory among different classes of risk.

What are the main concepts of insurance?

The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

Which of these is considered a mandatory provision?

Which of these is considered a mandatory provision? "Payment of Claims". Payment of Claims is considered a mandatory provision and directs where the claim benefits will go.

Which of the following provisions allows an insured or the insurer to terminate the policy?

The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid.

What required provision protects against unintentional lapse of the policy?

The purpose of the grace period provision is to protect the policyholder against an unintentional lapse of the policy.