DC Life Law Exam (Latest )
Tested Questions with Revised Answers, (A+
Guarantee
Grace Period - CORRECT ANSWERS Life insurance policies must contain a grace period of at
least 30 days or 1 month
Reinstatement - CORRECT ANSWERS Life insurance policies must also contain a provision for
reinstatement. If insured defaulted on premiums value of the policy will be applied to the next policy.
The amount of time to reinstate is 3 years as long as policy wasn't surrendered or cancelled.
Interest on past due premiums - CORRECT ANSWERS May not exceed 6% annually
Policy Loans - CORRECT ANSWERS LI policies may provide loans after the policy has been in
force for three full years, the company will loan the insured up to cash value of policy with policy as a
security.
Rights of parties under life policies - CORRECT ANSWERS Except in the case of transfer with the
intent to fraud creditors, LI policy proceeds going to assignee or beneficiary are protected from creditors
of either party. Group life may not be utilized for business legal debts
Group life termination rights - CORRECT ANSWERS The standard provision required for
individual policies do not apply to life.
Group policy grace period - CORRECT ANSWERS Group life has a grace period of 31 days for
the payments except for the first.
Incontestability - CORRECT ANSWERS Can't be contested after two years
, Copy of policy - CORRECT ANSWERS Must be attached to policy when issued
Evidence of Insurability - CORRECT ANSWERS The conditions under which insurer reserves the
right to require must be included
Misstatement of Age - CORRECT ANSWERS If age has been misstated a clear statement must
specify method by which equitable adjustment of premiums, benefits or both will be made
Beneficiary/person who incurs funeral expense - CORRECT ANSWERS Death benefit made to
beneficiary, if no beneficiary proceeds will be paid according to policy provisions, insurer may pay
amount of $250 to anyone incurring funeral, death, or final illness expenses
Insurer will issue to group policyholders what? - CORRECT ANSWERS Individual certificate
setting forth coverage, rights, and conditions for delivery to each person insured
If coverage ceases from termination of employment - CORRECT ANSWERS Insured is entitled
to have issued without evidence of insurability an individual policy without supplementary benefits, first
premium must be paid within 31 days of termination
If group policy terminates, those who were covered_____ - CORRECT ANSWERS For at least
five years are entitled an individual life insurance policy, 31 days after termination
Variable annuity laws - CORRECT ANSWERS Only companies authorized may issue or deliver
variable contracts in district. Commissioner looks at History and financial condition of company,
character and responsibility of officers and directors, and in the case of foreign and alien the laws of
domicile
What must commissioner be advised of in terms of issuers of variable contracts? - CORRECT ANSWERS
Appointment of any new officer, manager, director or trustee, or resignation, discharge or death of a
person occupying those positions
Tested Questions with Revised Answers, (A+
Guarantee
Grace Period - CORRECT ANSWERS Life insurance policies must contain a grace period of at
least 30 days or 1 month
Reinstatement - CORRECT ANSWERS Life insurance policies must also contain a provision for
reinstatement. If insured defaulted on premiums value of the policy will be applied to the next policy.
The amount of time to reinstate is 3 years as long as policy wasn't surrendered or cancelled.
Interest on past due premiums - CORRECT ANSWERS May not exceed 6% annually
Policy Loans - CORRECT ANSWERS LI policies may provide loans after the policy has been in
force for three full years, the company will loan the insured up to cash value of policy with policy as a
security.
Rights of parties under life policies - CORRECT ANSWERS Except in the case of transfer with the
intent to fraud creditors, LI policy proceeds going to assignee or beneficiary are protected from creditors
of either party. Group life may not be utilized for business legal debts
Group life termination rights - CORRECT ANSWERS The standard provision required for
individual policies do not apply to life.
Group policy grace period - CORRECT ANSWERS Group life has a grace period of 31 days for
the payments except for the first.
Incontestability - CORRECT ANSWERS Can't be contested after two years
, Copy of policy - CORRECT ANSWERS Must be attached to policy when issued
Evidence of Insurability - CORRECT ANSWERS The conditions under which insurer reserves the
right to require must be included
Misstatement of Age - CORRECT ANSWERS If age has been misstated a clear statement must
specify method by which equitable adjustment of premiums, benefits or both will be made
Beneficiary/person who incurs funeral expense - CORRECT ANSWERS Death benefit made to
beneficiary, if no beneficiary proceeds will be paid according to policy provisions, insurer may pay
amount of $250 to anyone incurring funeral, death, or final illness expenses
Insurer will issue to group policyholders what? - CORRECT ANSWERS Individual certificate
setting forth coverage, rights, and conditions for delivery to each person insured
If coverage ceases from termination of employment - CORRECT ANSWERS Insured is entitled
to have issued without evidence of insurability an individual policy without supplementary benefits, first
premium must be paid within 31 days of termination
If group policy terminates, those who were covered_____ - CORRECT ANSWERS For at least
five years are entitled an individual life insurance policy, 31 days after termination
Variable annuity laws - CORRECT ANSWERS Only companies authorized may issue or deliver
variable contracts in district. Commissioner looks at History and financial condition of company,
character and responsibility of officers and directors, and in the case of foreign and alien the laws of
domicile
What must commissioner be advised of in terms of issuers of variable contracts? - CORRECT ANSWERS
Appointment of any new officer, manager, director or trustee, or resignation, discharge or death of a
person occupying those positions
