LOMA 281 Module 3 Lesson 2 UPDATED
ACTUAL Questions and CORRECT
Answers
entire contract provision - CORRECT ANSWER - An insurance and annuity policy
provision that defines the documents that constitute the contract between the insurance company
and the policyowner.
closed contract - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER - An insurance and annuity policy provision
that gives the policyowner a stated period of time—usually at least 10 days—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 - CORRECT ANSWER - A false or misleading statement in an
application for insurance.
material misrepresentation - CORRECT ANSWER - A misrepresentation that is relevant to
an insurance company's evaluation of the proposed insured.
incontestability provision - CORRECT ANSWER - 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.
ACTUAL Questions and CORRECT
Answers
entire contract provision - CORRECT ANSWER - An insurance and annuity policy
provision that defines the documents that constitute the contract between the insurance company
and the policyowner.
closed contract - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER - An insurance and annuity policy provision
that gives the policyowner a stated period of time—usually at least 10 days—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 - CORRECT ANSWER - A false or misleading statement in an
application for insurance.
material misrepresentation - CORRECT ANSWER - A misrepresentation that is relevant to
an insurance company's evaluation of the proposed insured.
incontestability provision - CORRECT ANSWER - 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.
