Chapter 12 Flashcards
who are the largest life insurers in the US?
- Northwestern Mutual
- New York Life
- Metlife
for life insurers, is bigger better for an Insured?
no, big insurance companies many be more automated
what is when the policyholder possesses all contractual rights in the policy while the insured is living?
ownership clause
what is the entire contract clause?
the policy and application constitutes the entire contract
what is when insurer can not contest the policy after it has been in force for two years?
the incontestable clause
what is the suicide clause?
if insured commits suicided, within two years the face amount of the policy is not paid. premiums refunded
what is grace period?
period to pay overdue premiums
what are terms if policy lapses for non payment?
reinstatement clause
what is when payment at death adjusted to amount of coverage premiums paid would have purchased?
misstatement of age or sex clause
what is beneficiary designation?
- primary/ contingent
- revocable/ irrevocable
- specific persons/ class
what is change of plan?
provides policyholders flexibility to change plans
what are exclusions and limitations?
- war
- aviation (private pilot)
- high risk hobbies ( auto racing, sky diving)
what is payment of premiums?
payment terms
what are the two types of assignment clause?
absolute and collateral
what is policy loan provision?
borrow from cash value
