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  4. Life Policy Provisions Options and Riders

Free Life Policy Provisions Options and Riders Practice Questions

South Carolina Life exam — 95 practice questions.

Subtopics: Grace period, Incontestability, Reinstatement, Suicide clause, Cash surrender, Reduced paid-up, Extended term, Dividends, Waiver of premium, Accidental death, Guaranteed insurability, Settlement options, Policy loans, Ownership rights, Entire contract, Misstatement of age, Ownership, Assignment, Collateral assignment, 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, Automatic premium loan, Policy loan, 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 life insurance provision that keeps a policy in force for a stated time after a premium due date is the:

Grace period

The grace period allows the policy to remain in force for a set time after a missed premium so coverage is not immediately lost.

2. After a life policy has been in force for the period stated in the incontestability clause, the insurer generally cannot:

Contest the policy for a material misstatement on the application

Once the incontestability period (commonly two years) has passed, the insurer generally cannot void the policy for misstatements in the application.

3. To reinstate a lapsed life insurance policy, the policyowner generally must:

Provide evidence of insurability and pay overdue premiums

Reinstatement usually requires proof of insurability and payment of back premiums (often with interest) within the allowed period.

4. Under a typical life policy suicide clause, if the insured dies by suicide within the stated period the insurer will:

Refund the premiums paid, limiting its liability

During the suicide exclusion period, the insurer's liability is generally limited to a return of premiums paid rather than the full death benefit.

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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.