Missouri Life Insurance Questions and
Answers| Latest Update
The insuring clause Correct Ans-The insurers basic promise to pay specific benefits if I
benefits to a designated person in the event of a covered loss.
Consideration clause Correct Ans-A policy owners consideration consist of completing the
application and pay the initial premium. The amount and frequency of premium payments are
contained in the consideration clause
The entire contract Correct Ans-The insurance policy itself, any riders and
endorsements/amendments, and the application compromise the entire contract between all
parties. Insurance producers cannot make changes to a policy. The entire contractors vision is
found at the beginning of every life insurance policy issued.
The grace period Correct Ans-The period of time policy owners are allowed to pay an
overdue premium during which the policy remains in force, usually 30 days.
Reinstatement Correct Ans-Permits the policy owner to reinstate a policy that has lapsed, as
long as the policy owner can provide proof of insurability and pays all back premiums,
outstanding loans and interest.
In contestable clause Correct Ans-Prevents the insurer from denying a claim or avoiding a life
insurance policy, except for nonpayment of premium's, after the policy has been divorced for two
years.
, Miss statement of age or sex Correct Ans-Allows the insured to adjust the policy benefits if
the insured's age or sex is Miss stated on the policy application.
Policy loan provisions Correct Ans-Any loans with interest due at the time of death will be
deducted from the insurance policy proceeds.
Assignment clause Correct Ans-Absolute assignment is when the assignee receive full control
of the policy and rights to the policy benefits. A collateral assignment is the partial and
temporary transfer of rights.
Free look Correct Ans-The policy owner is permitted a certain number of days once the
policy is deliver to look over the policy and return it for a full refund of all premiums paid
Exclusions Correct Ans-If he sure of life insurance policy stating that the policy will not
cover certain risks.
Suicide clause Correct Ans-The policy will be voided and no death benefit will be paid if the
insured commit suicide within one year of the policy. The primary purpose of a suicide provision
is to protect the insurer against the purchase of a policy in a contemplation of suicide.
Non-forfeiture options Correct Ans-When he policy owner decides he does not want his life
insurance policy anymore, he has the option to surrender his policy. If there is cash value
remaining he must use one of the following non-forfeiture options.
Answers| Latest Update
The insuring clause Correct Ans-The insurers basic promise to pay specific benefits if I
benefits to a designated person in the event of a covered loss.
Consideration clause Correct Ans-A policy owners consideration consist of completing the
application and pay the initial premium. The amount and frequency of premium payments are
contained in the consideration clause
The entire contract Correct Ans-The insurance policy itself, any riders and
endorsements/amendments, and the application compromise the entire contract between all
parties. Insurance producers cannot make changes to a policy. The entire contractors vision is
found at the beginning of every life insurance policy issued.
The grace period Correct Ans-The period of time policy owners are allowed to pay an
overdue premium during which the policy remains in force, usually 30 days.
Reinstatement Correct Ans-Permits the policy owner to reinstate a policy that has lapsed, as
long as the policy owner can provide proof of insurability and pays all back premiums,
outstanding loans and interest.
In contestable clause Correct Ans-Prevents the insurer from denying a claim or avoiding a life
insurance policy, except for nonpayment of premium's, after the policy has been divorced for two
years.
, Miss statement of age or sex Correct Ans-Allows the insured to adjust the policy benefits if
the insured's age or sex is Miss stated on the policy application.
Policy loan provisions Correct Ans-Any loans with interest due at the time of death will be
deducted from the insurance policy proceeds.
Assignment clause Correct Ans-Absolute assignment is when the assignee receive full control
of the policy and rights to the policy benefits. A collateral assignment is the partial and
temporary transfer of rights.
Free look Correct Ans-The policy owner is permitted a certain number of days once the
policy is deliver to look over the policy and return it for a full refund of all premiums paid
Exclusions Correct Ans-If he sure of life insurance policy stating that the policy will not
cover certain risks.
Suicide clause Correct Ans-The policy will be voided and no death benefit will be paid if the
insured commit suicide within one year of the policy. The primary purpose of a suicide provision
is to protect the insurer against the purchase of a policy in a contemplation of suicide.
Non-forfeiture options Correct Ans-When he policy owner decides he does not want his life
insurance policy anymore, he has the option to surrender his policy. If there is cash value
remaining he must use one of the following non-forfeiture options.
