What is a Nonforfeiture clause?

What reduced paid-up insurance is as a Nonforfeiture option?

Nonforfeiture Reduced Paid-Up Benefit — a life insurance policy nonforfeiture benefit option to use the cash surrender value of the policy to purchase a fully paid-up life permanent insurance policy for a lesser amount of coverage. ... Also known as reduced paid-up insurance.

What does twisting mean in insurance?

Twisting — the act of inducing or attempting to induce a policy owner to drop an existing life insurance policy and to take another policy that is substantially the same kind by using misrepresentations or incomplete comparisons of the advantages and disadvantages of the two policies.

What is an incontestable clause?

life insurance

Perhaps the best-known is the incontestable clause, which provides that if a policy has been in force for two years the insurer may not afterward refuse to pay the proceeds or cancel the contract for any reason except nonpayment of premiums.

What are 5 dividend options?

Which of the following is true about Nonforfeiture values?

Terms in this set (125) Which of the following is TRUE about nonforfeiture values? ... Nonforfeiture values are required by state law to be included in the policy, and cannot be altered by the policyowner. A table showing the nonforfeiture values for the next 20 years must be included in the policy.

What do Nonforfeiture values guarantee?

Nonforfeiture values give the insured the right to the cash value even if the policy lapses or is surrendered. Issue the policy anyway and pay the face value to the beneficiary. ... A convertible term policy has a provision that allows the policyowner to convert to permanent insurance.

Which Nonforfeiture option has the highest death benefit?

The option that will provide guaranteed coverage of the original death benefit for the longest period of time is the extended term insurance option.

What does Accelerated death benefit mean?

The Accelerated Death Benefit (ADB) is a provision in most life insurance policies that allows a person to receive a portion of their life insurance money early — to use while they are still living. ... People with certain disabling conditions can also qualify for ADB regardless of life expectancy.

What is a forfeiture option?

Forfeited Options means any Prior Vested Options that, in connection with the Executive's termination of employment with the Prior Employer, the Prior Employer does not permit the Executive to exercise, or the Executive cannot both exercise and sell the stock underlying, prior to the expiration thereof, because of ...

How do you calculate Nonforfeiture value?

The nonforfeiture net level premium shall be equal to the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one per annum payable on the date of issue of the policy and on each ...

Which of the following Nonforfeiture options would be automatically implemented?

Which nonforfeiture option is the "automatic" option? If the policyowner cannot be reached, premium payments have ceased, and the policy's cash value is eliminated, the insurer will automatically use the extended term option.

What is guaranteed insurability?

The Guaranteed Insurability Benefit Rider guarantees the policy owner the right to purchase additional permanent life insurance policies without evidence of insurability. On each option date specified in the contract, Nationwide will permit the purchase of an additional life insurance policy.

When an insured dies who has first claim to the death proceeds of the insured life insurance policy?

There are typically two levels of beneficiary: primary and contingent. A primary beneficiary is essentially your first choice to receive the death benefit if you pass away.

What happens when a policy is surrendered for its cash value?

What happens when a policy is surrendered for its cash value? Coverage ends and the policy cannot be reinstated. ... Policy loans can be made on policies that do not accumulate cash value.

What is an insuring clause?

In insurance: Liability insurance. One is the insuring clause, in which the insurer agrees to pay on behalf of the insured all sums that the insured shall become legally obligated to pay as damages because of bodily injury, sickness or disease, wrongful death, or injury to another person's property.

What is the misstatement of age clause?

In insurance: Other provisions. …policy was taken out, the misstatement-of-age clause provides that the amount payable is the amount of insurance that would have been purchased for the premium had the correct age been stated. Many life insurance policies, known as participating policies, return dividends to the insured ...

What is average clause?

Definition of average clause

1 : a clause in an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured — compare coinsurance.

What does bending mean in insurance?

The act of "twisting" when life insurance is being sold is illegal in most states. Twisting occurs when an insurance agent replaces an existing life policy with a new one using misleading tactics. It does not mean that every time an agent replaces a life insurance policy that twisting has occurred.

What does slander mean in insurance?

Slander — the oral statement of untrue, defamatory remarks that lower a person's esteem in his or her community that gives rise to a legal cause of action against the speaker. Standard commercial general liability (CGL) insurance policies apply to slander and libel claims made against the insured.

What does redlining mean in insurance?

Redlining — an underwriting practice involving the rejection of a risk based solely on geographical location. This practice is prohibited under the laws of most states as it tends to be discriminatory to minorities.