LOMA 281 Module 3 Lesson 2 Exam
Questions and Answers Already Graded
A+
entire contract provision - ✔✔An insurance and annuity policy provision
that defines the documents that constitute the contract between the
insurance company and the policyowner.
closed contract - ✔✔A contract for which only those terms and conditions
that are printed in—or attached to—the contract are considered to be part
of the contract. Insurance policy, policy riders, application for insurance.
open contract - ✔✔A contract that identifies the documents that constitute
the contract between the parties, but all the enumerated documents are not
necessarily attached to the contract. Insurance policy, riders, membership
app, declaration of insurability, fraternal charter, constitution, bylaws.
free-look provision - ✔✔An insurance and annuity policy provision that
gives the policyowner a stated period of time—usually at least 10 days—
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, after the policy is delivered in which to examine the policy. Also known as
free-examination provision. Can cancel and get a full refund.
misrepresentation - ✔✔A false or misleading statement in an application for
insurance.
material misrepresentation - ✔✔A misrepresentation that is relevant to an
insurance company's evaluation of the proposed insured.
incontestability provision - ✔✔An insurance and annuity policy provision
that describes the time limit within which the insurer has the right to avoid
the contract on the ground of material misrepresentation in the application.
fraudulent misrepresentation - ✔✔A misrepresentation that was made with
the intent to induce the other party to enter into a contract and that did
induce the innocent party to enter into the contract.
grace period provision - ✔✔An insurance policy provision that specifies a
length of time following each renewal premium due date within which the
premium may be paid without loss of coverage.
reinstatement - ✔✔The process by which an insurer puts back into force a
life insurance policy that either has been terminated because of
nonpayment of renewal premiums or has been continued under the
extended term or reduced paid-up insurance nonforfeiture option.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions and Answers Already Graded
A+
entire contract provision - ✔✔An insurance and annuity policy provision
that defines the documents that constitute the contract between the
insurance company and the policyowner.
closed contract - ✔✔A contract for which only those terms and conditions
that are printed in—or attached to—the contract are considered to be part
of the contract. Insurance policy, policy riders, application for insurance.
open contract - ✔✔A contract that identifies the documents that constitute
the contract between the parties, but all the enumerated documents are not
necessarily attached to the contract. Insurance policy, riders, membership
app, declaration of insurability, fraternal charter, constitution, bylaws.
free-look provision - ✔✔An insurance and annuity policy provision that
gives the policyowner a stated period of time—usually at least 10 days—
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, after the policy is delivered in which to examine the policy. Also known as
free-examination provision. Can cancel and get a full refund.
misrepresentation - ✔✔A false or misleading statement in an application for
insurance.
material misrepresentation - ✔✔A misrepresentation that is relevant to an
insurance company's evaluation of the proposed insured.
incontestability provision - ✔✔An insurance and annuity policy provision
that describes the time limit within which the insurer has the right to avoid
the contract on the ground of material misrepresentation in the application.
fraudulent misrepresentation - ✔✔A misrepresentation that was made with
the intent to induce the other party to enter into a contract and that did
induce the innocent party to enter into the contract.
grace period provision - ✔✔An insurance policy provision that specifies a
length of time following each renewal premium due date within which the
premium may be paid without loss of coverage.
reinstatement - ✔✔The process by which an insurer puts back into force a
life insurance policy that either has been terminated because of
nonpayment of renewal premiums or has been continued under the
extended term or reduced paid-up insurance nonforfeiture option.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
