Florida 2-15 exam 2024 with complete solutions

Insuring Clause (or Insuring Agreement) correct answersis the insurer's basic promise to pay specified benefits to a designated person in the event of a covered loss. States the scope and limits of coverage "We ensure to INSURE you for..." Consideration Clause correct answersstates a policyowner must pay a premium in exchange for the insurer's promise to pay benefits. A policyowner's consideration consists of completing the application and paying the initial premium. The amount and frequency of premium payments are contained in the consideration clause. Grace Period correct answersperiod after the due date of a premium during which the policy remains in force without penalty. Reinstatement correct answersputting a lapsed policy back in force by producing satisfactory evidence of insurability and paying any past-due premiums required. The Automatic Premium Loan provision (or rider): correct answersAllows the insurance company to deduct overdue premium from an insured's cash value by the end of the grace period if a payment is missed on a life policy. Policy Loan (cash withdrawal) Provisions correct answersapply to policies that have cash value also have policy loan and withdrawal provisions. These policies must begin to build cash value after a certain number of years. In most states, this is 3 years. The "Incontestability Period" correct answersprovides that, for certain reasons such as misstatements on the application, the company may void a life insurance policy after it has been in force during the insured's lifetime, usually one or two years after issue. assignment clause correct answersallows the right to transfer policy rights to another person or entity