Primerica Life Insurance In Person
Class
is a provision? - ANSDefine the standard characteristics of all policies. No need to add these
items, it usually comes with the policy
Entire Contract - ANSThink R.A.P., this is what it includes
R- Riders
A- Application
P- Policy
This is a legal contract and can not be changed unless both parties agree to the change.
Tip: Buyer's Guide - Illustrations - Policy Summary are required but not apart of the actual
contract, extra documents
Insuring Clause - ANSthe promise to pay for losses covered by the policy in exchange for
the insureds premium and compliance with policy terms.
Consideration - ANSsomething of value exchanged for something else of value
Payment of Premium - ANSThis policy determines when premiums are paid (modes) and to
whom. Any unused premium will be refunded.
Grace Period - ANSPeriod of time after the premium is due that allows the policy owner to
pay the premium -> month/30 days/ 31 days
What is the purpose of the grace period? - ANSTo protect the policyholder against an
unintentional lapse of the policy. Policy lapses after grace period if unpaid.
What happens if you die during the grace period? - ANSCompany will stay pay the death
benefit but the premium will be deducted first.
Reinstatement - ANSRestore a lapsed policy
What type of policies can be reinstated and which type can not? - ANSLapsed policies can
be reinstated ; Surrendered policies can not
How much time do you have to reinstate a policy? - ANS3 years to reinstate a policy after a
lapse
What must you do to reinstate a policy? - ANSRemember 3 P's (Pay, Pay, Prove)
1. Pay back premium owed with interest
2. Pay back loans taken with interest
3. Prove insurability
, Primerica Life Insurance In Person
Class
What are the advantages of reinstating a policy? - ANSKeep the same issued date so you
can keep the age of the policy before it lapsed (still need good health for favorable terms).
There is no fee, just pay back what you owe with interest
Incontestability Clause - ANSPrevents an insurer from denying a claim due to
misrepresentations made after 2 years. Before 2 years, insurer can contest any material
misrepresentations on the application.
When does the incontestability clause not apply? - ANSDoes not apply to misstatements
made relating to age, sex or fake identity.
Misstatement of Age and Gender - ANSAt any time a company can adjust the benefits to an
amount of premium due to a misstatement of age or gender on the application. The policy
will be recalculated to the correct age or gender
Owner's Right - ANSOnly the policy owner has owner's rights to the policy - not the insured
or the beneficiary.
What are the owner's rights? And who has the responsibility to pay the premium? - ANS1.
Naming and changing the beneficiary
2. Receiving the policy's living benefits
3. Selecting a benefit payment options
4. Assigning the policy
Policy owner has the responsibility to pay the premium
Assignment - ANSThe policy owner has the right to transfer the owner's rights to someone
else partially or complete ownership without the consent of the insurer. But they must advise
the insurer in writing of the assignment.
What does not change with a transfer of the life insurance policy? - ANSThe insured person
or the amount of coverage (death benefit)
What are the 2 types of assignments? - ANS1. Absolute Assignment
2. Collateral Assignment
Absolute Assignment - ANStransfers ALL rights of ownership to another person or entity
permanently. S/N: the new policy owner does not have to have insurable interest with the
insured.
Collateral Assignment - ANSinvolves a transfer of partial rights to another person and is
temporary. This is usually used for a debt/loan. Once the loan is paid the assignment goes
away and policy amount is returned to the owner. If loan not paid lender can take the loan
amount from the policy.
Class
is a provision? - ANSDefine the standard characteristics of all policies. No need to add these
items, it usually comes with the policy
Entire Contract - ANSThink R.A.P., this is what it includes
R- Riders
A- Application
P- Policy
This is a legal contract and can not be changed unless both parties agree to the change.
Tip: Buyer's Guide - Illustrations - Policy Summary are required but not apart of the actual
contract, extra documents
Insuring Clause - ANSthe promise to pay for losses covered by the policy in exchange for
the insureds premium and compliance with policy terms.
Consideration - ANSsomething of value exchanged for something else of value
Payment of Premium - ANSThis policy determines when premiums are paid (modes) and to
whom. Any unused premium will be refunded.
Grace Period - ANSPeriod of time after the premium is due that allows the policy owner to
pay the premium -> month/30 days/ 31 days
What is the purpose of the grace period? - ANSTo protect the policyholder against an
unintentional lapse of the policy. Policy lapses after grace period if unpaid.
What happens if you die during the grace period? - ANSCompany will stay pay the death
benefit but the premium will be deducted first.
Reinstatement - ANSRestore a lapsed policy
What type of policies can be reinstated and which type can not? - ANSLapsed policies can
be reinstated ; Surrendered policies can not
How much time do you have to reinstate a policy? - ANS3 years to reinstate a policy after a
lapse
What must you do to reinstate a policy? - ANSRemember 3 P's (Pay, Pay, Prove)
1. Pay back premium owed with interest
2. Pay back loans taken with interest
3. Prove insurability
, Primerica Life Insurance In Person
Class
What are the advantages of reinstating a policy? - ANSKeep the same issued date so you
can keep the age of the policy before it lapsed (still need good health for favorable terms).
There is no fee, just pay back what you owe with interest
Incontestability Clause - ANSPrevents an insurer from denying a claim due to
misrepresentations made after 2 years. Before 2 years, insurer can contest any material
misrepresentations on the application.
When does the incontestability clause not apply? - ANSDoes not apply to misstatements
made relating to age, sex or fake identity.
Misstatement of Age and Gender - ANSAt any time a company can adjust the benefits to an
amount of premium due to a misstatement of age or gender on the application. The policy
will be recalculated to the correct age or gender
Owner's Right - ANSOnly the policy owner has owner's rights to the policy - not the insured
or the beneficiary.
What are the owner's rights? And who has the responsibility to pay the premium? - ANS1.
Naming and changing the beneficiary
2. Receiving the policy's living benefits
3. Selecting a benefit payment options
4. Assigning the policy
Policy owner has the responsibility to pay the premium
Assignment - ANSThe policy owner has the right to transfer the owner's rights to someone
else partially or complete ownership without the consent of the insurer. But they must advise
the insurer in writing of the assignment.
What does not change with a transfer of the life insurance policy? - ANSThe insured person
or the amount of coverage (death benefit)
What are the 2 types of assignments? - ANS1. Absolute Assignment
2. Collateral Assignment
Absolute Assignment - ANStransfers ALL rights of ownership to another person or entity
permanently. S/N: the new policy owner does not have to have insurable interest with the
insured.
Collateral Assignment - ANSinvolves a transfer of partial rights to another person and is
temporary. This is usually used for a debt/loan. Once the loan is paid the assignment goes
away and policy amount is returned to the owner. If loan not paid lender can take the loan
amount from the policy.
