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  4. Life Policy Provisions Options and Riders

Free Life Policy Provisions Options and Riders Practice Questions

North Carolina Life exam — 90 practice questions.

Subtopics: Grace period, Incontestability, Reinstatement, Misstatement of age, Nonforfeiture, Waiver of premium, Accelerated benefit, Settlement options, Beneficiary designation, Policy loan, 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, Extended term, Automatic premium loan, Partial withdrawal, Dividends not guaranteed, Paid-up additions, Accumulation at interest, Reduction of premium, Payor benefit, Accidental death rider, Guaranteed insurability, 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. North Carolina individual life policies generally must include a grace period for premium payment of at least:

31 days

North Carolina requires individual life policies to provide a grace period of at least 31 days during which coverage continues while an overdue premium may be paid.

2. The incontestability provision generally prevents an insurer from contesting a life policy for misstatements after the policy has been in force for:

Two years during the insured's lifetime

After the policy has been in force for the contestable period (commonly two years) during the insured's lifetime, the insurer generally may not contest it except for nonpayment of premium.

3. Which provision allows a lapsed life policy to be restored if the owner provides evidence of insurability and pays back premiums with interest?

Reinstatement provision

The reinstatement provision permits restoration of a lapsed policy within a stated period upon proof of insurability and payment of overdue premiums with interest, often plus loan repayment.

4. Under the misstatement of age provision, if an insured's age was understated, the death benefit will be:

Adjusted to what the premium would have purchased at the correct age

If age or sex is misstated, the benefit is adjusted to the amount the premium paid would have purchased at the correct age, rather than voiding the contract.

All Life topics

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.