Chapter 12 RSM Exam | Questions with 100%
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Allows a lapsed policy to be reinstated with proof of insurability and payment
of overdue premiums.
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1 Ownership Clause 2 Reinstatement Clause
3 Change-of-Plan Provision 4 Grace Period
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Terms in this set (41)
, Ownership Clause Grants the policyholder all contractual rights
including beneficiary changes and policy
surrender.
Entire-Contract Clause Specifies that the policy and application together
form the entire agreement.
Incontestable Clause Prevents insurer from contesting the policy after
two years except in limited cases.
Suicide Clause Limits insurer liability to refund of premiums if
suicide occurs within two years.
Grace Period Allows a period (usually 31 days) to pay overdue
premiums without losing coverage.
Reinstatement Clause Allows a lapsed policy to be reinstated with proof
of insurability and payment of overdue premiums.
Misstatement of Age or Sex Adjusts the benefit based on correct demographic
information rather than canceling the policy.
Primary Beneficiary First person designated to receive policy
proceeds.
Contingent Beneficiary Receives proceeds if the primary beneficiary is
deceased.
Revocable Beneficiary Can be changed without beneficiary consent.
Irrevocable Beneficiary Cannot be changed without beneficiary approval.
Correct Answers | Verified | Latest Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Allows a lapsed policy to be reinstated with proof of insurability and payment
of overdue premiums.
Choose an answer
1 Ownership Clause 2 Reinstatement Clause
3 Change-of-Plan Provision 4 Grace Period
Don't know?
Terms in this set (41)
, Ownership Clause Grants the policyholder all contractual rights
including beneficiary changes and policy
surrender.
Entire-Contract Clause Specifies that the policy and application together
form the entire agreement.
Incontestable Clause Prevents insurer from contesting the policy after
two years except in limited cases.
Suicide Clause Limits insurer liability to refund of premiums if
suicide occurs within two years.
Grace Period Allows a period (usually 31 days) to pay overdue
premiums without losing coverage.
Reinstatement Clause Allows a lapsed policy to be reinstated with proof
of insurability and payment of overdue premiums.
Misstatement of Age or Sex Adjusts the benefit based on correct demographic
information rather than canceling the policy.
Primary Beneficiary First person designated to receive policy
proceeds.
Contingent Beneficiary Receives proceeds if the primary beneficiary is
deceased.
Revocable Beneficiary Can be changed without beneficiary consent.
Irrevocable Beneficiary Cannot be changed without beneficiary approval.
