Which of the following statements applies when an insured dies during the grace period of a life insurance contract?
Asked by: Mr. Art Strosin I | Last update: February 11, 2022Score: 4.2/5 (49 votes)
Coverage remains in force during the grace period. ... If the insured dies during the grace period, no death benefit is payable but all premiums will be returned. If the insured dies during the grace period the insurer will pay the death benefit minus the overdue premium.
What usually happens if the insured person dies during a grace period?
If you die during the grace period without paying the bill, your beneficiary will receive the death benefit, minus the money you owe. You'll run into trouble if the grace period passes and you still haven't paid your life insurance premium.
Which of the following does not happen if an insured dies during the grace period of a policy?
Which of the following does NOT happen if an insured dies during the grace period of a policy? The insurance company is NOT relieved of the responsibility to pay a benefit in the event the insured dies during the grace period.
What is an insurance policy's grace period quizlet?
What is an insurance policy's grace period? Period of time after the premium is due but the policy remains in force.
Which policy provision stipulates for what period of time the policy will remain in effect after the premium payment due date?
An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing. The insurance grace period can vary depending on the insurer and policy type.
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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 is an insurance policy period?
Policy Period means the period between the inception date and the expiry date as specified in the Schedule to this Policy or the cancellation of this insurance, whichever is earlier.
How long is the grace period for an individual life insurance policy quizlet?
The grace period is the period during which the premium must be paid. It begins with the premium due date as specified in the policy. The grace period can vary, but for most ordinary life policies, it is 1 month (30 or 31 days). The insurer may impose an interest penalty on premiums paid during the grace period."
When can a lapsed life insurance policy usually be reinstated quizlet?
Lapsed life insurance policies can be reinstated at any time within three years from the date of premium default. To reinstate the policy, the former policyholder must provide satisfactory evidence of insurability, pay back premiums (with interest), and pay or reinstate any other indebtedness on the policy.
How long is the life insurance policy grace period quizlet?
The grace period for paying a life insurance premium is generally 31 days. This means the policyowner has 31 days following the premium due date to pay the premium. If the policyowner does not pay the premium within the 31-day grace period, the policy lapses.
Which of the following statements describes an insurable interest?
The correct answer is (b) An insurable interest must exist when the policy is issued and when any loss occurs.
Which of the following statements is correct about reinstatement provisions on life insurance policies that have lapsed chegg?
Answer C is correct. To reinstate a lapsed policy, back premiums plus interest need be paid, proof of insurability is required, and a request for reinstatement has a time limit.
Who is liable when an insured suffers a loss?
When it comes to insurance agents, an insurance policyholder may hold the insurance company responsible, along with an individual agent. That is primarily because agents represent insurance companies, and both an agent and a principal are liable for an agent's negligence.
Which of the below statements is correct with regard to grace period of an insurance policy?
Solution(By Examveda Team)
The standard length of the grace period is one month or 31 days. The days of grace may be computed from the next day after the due date fixed for payment of the premium.
Is insurance valid during grace period?
The health insurance policy remains active until the renewal date. A grace period is given by the insurer to the policyholder to pay the premium and then continue to enjoy the benefits. However, during the grace period claims raised will be rejected.
What does a lapsed life insurance policy mean?
When policyholders stop paying premiums and when the account value of the insurance policy has already been exhausted, the policy lapses. A policy does not lapse each and every time a premium payment is missed. ... Term life insurance does not have this benefit because it does not gain cash value.
Which of the following statements about a guaranteed renewable?
Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? A Guaranteed Renewable Health Insurance policy can have increasing premiums at time of renewal. ... The purpose of the Time of Payment of Claims provision is to prevent the insurance company from delaying claim payments.
What is the purpose for having an accelerated death benefit on a life insurance policy quizlet?
What is the purpose for having an accelerated death benefit on a life insurance policy? An accelerated death benefit allows for cash advances to be paid against the death benefit if the insured becomes terminally ill.
Which of the following statements is a required provision in all individual health insurance policy?
All individual health insurance policies must contain an entire contract provision stating that the policy, including the endorsements and attached papers, constitutes the entire insurance contract.
What happens when an insurance policy is backdated?
What happens when an insurance policy is backdated? Backdating your life insurance policy gets you cheaper premiums based on your actual age rather than your nearest physical age or your insurance age. You'll pay additional premiums upfront to account for the policy's backdate.
Which of the following is an example of liquidity in a life insurance contract?
Which of the following is an example of liquidity in a life insurance contract? The cash value available to the policyowner. Liquidity in life insurance refers to availability of cash to the insured. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs.
How long is the grace period for an individual life insurance policy?
Most policies have a 31-day grace period after your premium's due date. You can make a late payment without being charged interest and still be covered. If you die during the grace period, your beneficiary gets the death benefit minus the past due premium.
Where is the policy period stated in insurance?
Generally, Date of Loss for Insurance Claims Is When Damage or Loss Occurred. Your date of loss should be within the effective period of your insurance policy. The start and expiry dates of your insurance policy are normally stated on the declarations page.
What are the conditions in an insurance policy?
Policy conditions are the provisions in an insurance policy that often require the insured to comply with certain requirements to obtain coverage under the policy. Policy conditions can be overlooked because they are not in the insuring agreement, the exclusions, or the definitions.
What is included in an insurance policy?
An insurance policy is a contract that defines the obligations of both the insured and the insurer. ... Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements.