Which scenario would most life insurance policies exclude coverage for?
Asked by: Mrs. Ellie Collier I | Last update: August 11, 2023Score: 4.9/5 (26 votes)
Life insurance covers any type of death. But if you commit fraud or die under excluded circumstances — such as suicide within the first two years — your policy might not pay out.
What are common exclusions to life insurance policy?
Risky activity: Any death due to risky activities, such as skydiving or rock climbing, are usually counted as an exclusion. Substance abuse: If a policyholder's death is the result of drug or alcohol abuse, it may be excluded from their policy.
What are two of the most common exclusions used by underwriters?
- War-time Peril. When people think of war-time peril, they think of soldiers. ...
- Aviation or Sky Diving. Aviation and sky diving are also considered to be risky endeavors. ...
- Dangerous or Hazardous Activities. ...
- Illegal or Criminal Activity. ...
- Suicide.
In which of the following relationships would there not be an insurance interest?
Insurable interest generally is present in blood relationship but would not exist in the following scenarios unless there is proof of financial dependence: Aunts and uncles. Cousins. Nieces and nephews.
Which of the following is not included in a life insurance illustration?
Returning a portion of a premium as inducement to purchase insurance is an example of rebating. Question: Which of the following is NOT included in a life insurance illustration? Answer: Company's mortality table. A life insurance illustration is NOT required to include the company's mortality table.
4 Life Insurance Policies Provisions, Options and Riders
What are five things not covered by life insurance?
What are five things not covered by life insurance? The five things not covered by life insurance are preexisting conditions, accidents that occur while under the influence of drugs or alcohol, suicide, criminal activity, and death due to a high-risk activity, such as skydiving, and war or acts of terrorism.
Which of the following is not included in usage of insurance?
Insurance is a means of protection from financial loss. It is a form of risk management primarily hedged against any uncertain future loss. The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.
Which of the following is not an example of a valid insurable interest quizlet?
Which of the following is NOT an example of insurable interest? Premium receipt.
What is not an insurable interest?
People not subject to financial loss do not have an insurable interest. Therefore a person or entity cannot purchase an insurance policy to cover themselves if they are not actually subject to the risk of financial loss.
Which life insurance is not considered interest sensitive?
Another difference between these two types of insurance is the cash value of a universal life insurance policy is interest sensitive. If interest rates go up, so will the cash values. A whole life insurance policy's cash value is not very interest sensitive.
What is major exclusions?
In insurance policies, exclusions are provisions that eliminate coverage for particular occurrences, properties, types of damage, or locations. The policy does not cover a plan that excludes any items or costs, and excluded fees are not included in the plan's out-of-pocket maximum.
What are exclusions from coverage clause?
The purpose of an exclusion clause is to define, from the outset, the specific risks which will not be covered by insurers in any event under the policy. Conditions precedent and warranties, on the other hand, will only affect the scope of cover when they are breached by the insured.
Which of the following would not be excluded in the coverage a exclusions section of the commercial general liability policy?
The correct answer is: C. Intentional acts – The CGL does not contain an “intentional acts” exclusion. Exclusion “a.” is the Expected or Intended Injury Exclusion, but it does not exclude an intentional ACT unless the act is Expected or Intended to cause an injury.
Why are exclusions used in insurance policies?
Insurance exclusions are policy provisions that waive coverage for certain types of risks or events. Policy exclusions create a balance between coverage for fortuitous losses (losses you couldn't have reasonably prepared for) and the need to remain solvent in order to pay those claims.
What is an example of exclusion in health insurance?
Some of these exclusions, such as dental and optical care, are actually add-on benefits that can be obtained on top of many general health insurance plans. On the contrary, miscellaneous hospital stay charges and cosmetic surgeries are virtually always excluded as they are not medically necessary expenses.
What are limitations and exclusions insurance?
Limitations are conditions or procedures covered under a policy but at a benefit level lower than the norm. Exclusions, by comparison, are conditions or procedures that are completely omitted from coverage. Your health insurance policy should list all limitations and exclusions.
What are three examples of non insurable risks?
An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.
What are four examples of non insurable risks?
- Residential overland water.
- Earthquake.
- Nuclear hazard.
- Terrorist acts.
- War.
- Acts of a foreign enemy.
What is an example of non insurable risk?
A risk that an insurer will not take on. For example, this may be where an event is inevitable (such as a terminally-ill person's death), gradual (such as rust or corrosion) or against the law.
What are some examples of an insurable interest and why are they insurable?
Insurable interest is when you have a financial stake in (or directly benefit from) the existence of an object or individual and would experience hardship if anything were to happen to it. For example, you have an insurable interest in your car because you would suffer a loss if it is damaged or destroyed.
What is an example of insurable interest in insurance?
An example of insurable interest is a policyholder buying property insurance for their own house but not for their neighbour's house. The person does not have an insurable interest in any financial loss arising from damage to their neighbour's house.
What examples can you give of insurable interest?
- Yourself.
- Your spouse or former spouse.
- Your children or grandchildren.
- A special needs adult child.
- An aging parent(s)
- An employer (under certain arrangements)
Which of the following is not involved in the function of life insurance?
Lending of funds is not a function of insurance.
What are 5 things commonly insured?
Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.
Which of the following is not included in property insurance coverage?
Property insurance policies normally exclude damage that results from a variety of events, including tsunamis, floods, drain and sewer backups, seeping groundwater, standing water, and a number of other sources of water. Mold is usually not covered, nor is the damage from an earthquake.