Free Life Policy Provisions Options and Riders Practice Questions
South Carolina Life exam — 160 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, Free look with replacement, Free look direct response, Free look refund, Incontestable riders, Rescission methods, Mutual rescission, Delayed death claim interest, Premium refund at death, Reinstatement interest, Late premium acceptance, Policy loan deferral, Loan termination notice, Policy loan interest, Adjustable loan rate, Dividend options, Permitted exclusions, Aviation exclusion, Exclusion disclosure, Waiver authority, Benefit description, Beneficiary designation, Whole contract, Group life grace period, Group life statements, Group life conversion, Group life conversion premium, Group policy termination, Death during conversion, Late conversion notice, Facility of payment, Disability continuation, Group certificates, 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, War exclusion, Retained asset account, Incontestability clause, Cash surrender value option, Surrender charge, Maturity date provision, Policy loan interest rate, Cash value 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, Incontestable exception, Incontestable typical period, Grace period standard, Grace period length, Reinstatement window, Reinstatement advantage, Suicide clause period, Misstatement of sex, Change of beneficiary, Primary beneficiaries share, Tertiary beneficiary, No beneficiary living, Settlement interest taxation, Life income period certain, Settlement option choice, Extended term duration, Nonforfeiture purpose, Policy loan unpaid lapse, Automatic premium loan election, Dividend options default, Accelerated benefit effect, Accelerated benefit tax, Chronic illness rider, Waiver of premium waiting, Guaranteed insurability options, ADB time limit, Accidental death exclusions, Other insured rider conversion, Assignment and beneficiary, Payor rider ends
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. Under S.C. Code 38-63-220, the grace period in an individual life policy for premiums after the first must be at least:
31 days
South Carolina requires a grace period of not less than thirty-one days, during which the policy stays in force; an unpaid premium may be deducted from a claim paid during the grace period.
2. After a life policy has been in force for the period stated in the incontestability clause, the insurer generally cannot:
Contest it over application misstatements
After the two-year contestable period (S.C. Code 38-63-220(d)), the insurer cannot contest the policy on the basis of the truth of the application; nonpayment of premium still ends coverage.
3. Under S.C. Code 38-63-220(j), a lapsed individual life policy that has not been surrendered may be reinstated within how long after default?
3 years
The policy must allow reinstatement within three years after default (unless surrendered for cash or extended term has expired), with evidence of insurability and payment of overdue premiums with interest not over 8 percent.
4. Under S.C. Code 38-63-225, an individual life policy's suicide provision may limit benefits for no more than how long, and must at least return what?
Two years; the premiums paid
A suicide provision may not limit benefits for more than two years from the issue date and must provide for at least the return of premiums paid.
Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
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.
