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  4. Life Policy Provisions Options and Riders

Free Life Policy Provisions Options and Riders Practice Questions

Colorado Life exam — 95 practice questions.

Subtopics: Grace period, Incontestability, Reinstatement, Free look, Nonforfeiture options, Extended term, Policy loan, Automatic premium loan, Waiver of premium, Accidental death, Guaranteed insurability, Settlement options, Dividend options, Beneficiary designation, Misstatement of age, Entire contract, Ownership, Assignment, Collateral assignment, Suicide clause, Beneficiary primary, Contingent beneficiary, Revocable beneficiary, Irrevocable beneficiary, Per stirpes, Common disaster, Spendthrift clause, Settlement lump sum, Interest only, Life income option, Fixed period option, Fixed amount option, Cash surrender, Reduced paid-up, 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, Loan 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

Read the Life Policy Provisions Options and Riders study guide

Sample questions & answers

1. The grace period provision in a life policy allows the owner to:

Pay an overdue premium within a set time without lapse

The grace period gives the policyowner a set time after the due date to pay a premium without the policy lapsing.

2. The incontestability clause generally prevents the insurer from contesting the policy for material misstatements after it has been in force for:

Two years

After the policy has been in force for the contestable period (commonly two years), the insurer generally cannot contest it for misstatements.

3. To reinstate a lapsed life 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 continued insurability within the allowed period.

4. The free-look provision allows the policyowner to:

Return the policy within a stated period for a premium refund

The free-look provision lets the owner return the newly delivered policy within a stated period for a refund of premium.

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Practice: Life Policy Provisions Options and Riders

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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.