Unit 14

Which of the following states the insurer's promise to pay under the conditions described in the policy?

• the consideration clause

• the insuring clause

• the renewability clause

• the right to examine

What does the policyholder pay to the insurer to protect them from financial loss?

• claim

• liability

• premium

• deductible

What does the term 'Grace Period' refer to in the context of insurance policies?

• Time to file a claim after an incident

• Period to renew the policy without penalty

• Time allowed to pay the premium after the due date without losing coverage

• Duration of the insurance policy

How many days notice must an insurer give the insured if the policy is going to be cancelled

• 3 days

• 5 days

• 10 days

• 30 days

Written notice of a claim must be given to the insurer within how many days of the occurrence?

Tim decided to quit his desk job and become a professional skydiver. Due to this change in occupation, the insurer will

• reduce his benefits

• increase his benefits

• reduce his premium

• increase his premium

All of the following are optional provisions in an insurance policy except

• physical examination and autopsy

• unpaid premium

• insurance with other insurers

• change of occupation

All of the following are a part of the entire contract except

• the riders

• the application

• the insurance policy

• the premium payment

Mary has an insurance policy that cannot be cancelled for any reason except nonpayment of the premium, and premiums may increase on the renewal date. Which of the following type of renewability provision did Mary buy?

• non-cancelable

• optionally renewable

• guaranteed renewable

• conditionally renewable

Which of the following statements about reinstatement is NOT true?

• If the insurer requires a reinstatement application, a conditional receipt will be issued to the applicant

• Coverage is automatically reinstated 45 days after the application is submitted if the insurer has not notified the applicant

• Once a policy is reinstated, there is a 10 day waiting period for sickness coverage

• Once a policy is reinstated there is a 10 day waiting period for accident coverage.