ALU 202 CHAPTER 13 EXAM QUESTIONS WITH VERIFIED ANSWERS
LATEST UPDATE 2026
Life Claims - Answers One of the most critical parts of any insurance company's
operations.
Binding Receipts - Answers Generally remain in effect until the policy is issued, the
application is declined or the insurer terminates or suspends coverage under the
receipt.
A Trust named as beneficiary - Answers is known as a Non-Natural Beneficiary
Material Misrepresentation - Answers Is considered material if had the insurer known
the facts would have charged an increased premium for added risk, reduced the
amount of coverage applied for or declined to issue a policy.
Settlement Options - Answers types of claim settlement options are Interest Option,
Fixed period option, fixed amount option and life option
Additions to Basic Death Benefits - Answers Paid up additions, accidental death
benefits, excess premium paid in advance, dividends declaired but not paid, interest
on delayed claim payment and loan interest paid in advance.
Amendment - Answers A modification to the terms of a contract
Incontestable Provision - Answers Describes the time limit within which an insurer
has the right to void the contract on the grounds of material misrepresentation in the
application.
Contestable Period - Answers The stated period the insurer has the right to void the
contract and deny the claim. Often includes "during the lifetime of insured"
Misstatement of Age/Gender Provision - Answers Contractual provision in most
policies in the event of misstatement of age or sex at claim time the policy benefits
will be adjusted.
Waiver - Answers The act of intentionally or knowingly relinquishing a known right,
claim or privilege either expressed or implied.
Expressed Waivers - Answers Can be oral or written, they are clear statements that a
right is being given up.
Implied Waiver - Answers Not created by words but rather through the conduct of
the waiving party that clearly indicates that a right will not be enforced.
LATEST UPDATE 2026
Life Claims - Answers One of the most critical parts of any insurance company's
operations.
Binding Receipts - Answers Generally remain in effect until the policy is issued, the
application is declined or the insurer terminates or suspends coverage under the
receipt.
A Trust named as beneficiary - Answers is known as a Non-Natural Beneficiary
Material Misrepresentation - Answers Is considered material if had the insurer known
the facts would have charged an increased premium for added risk, reduced the
amount of coverage applied for or declined to issue a policy.
Settlement Options - Answers types of claim settlement options are Interest Option,
Fixed period option, fixed amount option and life option
Additions to Basic Death Benefits - Answers Paid up additions, accidental death
benefits, excess premium paid in advance, dividends declaired but not paid, interest
on delayed claim payment and loan interest paid in advance.
Amendment - Answers A modification to the terms of a contract
Incontestable Provision - Answers Describes the time limit within which an insurer
has the right to void the contract on the grounds of material misrepresentation in the
application.
Contestable Period - Answers The stated period the insurer has the right to void the
contract and deny the claim. Often includes "during the lifetime of insured"
Misstatement of Age/Gender Provision - Answers Contractual provision in most
policies in the event of misstatement of age or sex at claim time the policy benefits
will be adjusted.
Waiver - Answers The act of intentionally or knowingly relinquishing a known right,
claim or privilege either expressed or implied.
Expressed Waivers - Answers Can be oral or written, they are clear statements that a
right is being given up.
Implied Waiver - Answers Not created by words but rather through the conduct of
the waiving party that clearly indicates that a right will not be enforced.
