The _____ clause is a provision in a life insurance policy that prevents the insurer from...

The _____ clause is a provision in a life insurance policy that prevents the insurer from avoiding or revoking the coverage after a certain number of years of premium payments on the policy, even if the insured committed fraud in applying for the policy.

concealment

subrogation

no-fault

incontestable

insurable interest

Expert Solution

The correct answer is Incontestable

The incontestability clause protects the client who may have misrepresented while filling the original application for the life insurance.The company gets two years to investigate the insured from the date of application and in that period if the client dies and the company proves that he lied,then the claim can be denied however, if more than two years have elapsed,then the company cannot revoke the coverage, even if the insured committed fraud.

Rahul Sunny answered 2 years ago

11. The purpose of the suicide clause in a life insurance policy is to:

11. The purpose of the suicide clause in a life insurance policy is to:1. Exclude payment of death proceeds for suicide only during the first one or two years of the policy, thus providing the insurer with protection against an insured who purchases a life insurance policy with the intention of committing suicide.2. Exclude all death benefits that result from suicide to discourage policyholders who might contemplate ending their lives.3. Enable the insurer to retain paid premiums if an insured...

Suppose a particular life insurance policy has an expected profit for the insurer of $32. Which...

Suppose a particular life insurance policy has an expected profit for the insurer of $32. Which of the following is the best interpretation of this value. a) The company will earn an average of $32 for each additional policy sold. b) The company can expect a profit of $32 for each policy. c) When the company sells a policy, it is guaranteed a $32 profit. d) The company will earn $32 for each policy sold.

Regarding Allison's life insurance policy, life insurance proceeds are exculded from tax.

Regarding Allison's life insurance policy, life insurance proceeds are exculded from tax. Therefore,?the $1,200,000 face value of the policy is excluded as it is received. However, the earnings on the?policy during the time it is held by the insurace company are not exculdable. The total interest earned?is [ A ]. As each payment on the policy is recieved, you will exclude[ B ] and include[ C ].

2. (a) Consider an insurer that offers 2 types of policy: home insurance and car insurance....

2. (a) Consider an insurer that offers 2 types of policy: home insurance and car insurance. 20% of all customers have a home insurance policy, and 92% of all customers have a car insurance policy. Every customer has at least one of the two types of policies. Calculate the probability that a randomly selected customer (i) has home insurance, given that he has car insurance, (3) (ii) does not have car insurance, given that he has home insurance. (3) (b)...

Under the title insurance policy, the insurer agrees A) to furnish a valid title to the...

Under the title insurance policy, the insurer agrees A) to furnish a valid title to the insured. B) compensate any person who comes forward with a legal claim to the property. C) protect subsequent purchasers against loss resulting from a defective title transferred to them by the insured. D) defend the insured in the event of legal action in connection with losses not excluded by the policy.

A health insurance policy has a coinsurance clause that requires the insured to pay the first...

A health insurance policy has a coinsurance clause that requires the insured to pay the first $250 of charges and 20 percent of additional charges up to a maximum total payment of $1,250. The bills for health care are January 5. $120. March 30. $45 April 18. $375. June. 20. $63 August 25. $560. October 2. $190 November 1 $35. December 20. $95 Calculate the amount the insured must pay for each of the bills. Then determine the total amount...

The prices of life insurance policies: A. vary considerably from policy to policy. B. are relatively...

The prices of life insurance policies: A. vary considerably from policy to policy. B. are relatively the same for all policies. C. are higher for females than males. D. have remained constant over time. E. are set by the government here in the United States.

How did the Interstate Commerce clause evolve from an open market provision to complete regulation of...

How did the Interstate Commerce clause evolve from an open market provision to complete regulation of business?

Prudent policy life insurance co. offers a 10 year term life insurance policy with a $250000...

Prudent policy life insurance co. offers a 10 year term life insurance policy with a $250000 benefit and annual premiums of $200, paid at the beginning of each year. If prudent can earn 8% on invested capital, what is the present value to the firm of the premiums from one policy, assuming the policy holder outlives the policy term?

A life insurance trust is often named the beneficiary of a life insurance policy it holds...

A life insurance trust is often named the beneficiary of a life insurance policy it holds for which of the following reasons? a. It can provide greater flexibility than is available under insurance settlement options b. It can eliminate a second estate tax upon the death of the beneficiaries. c. It can incorporate special limitations and restrictions on the funds designed to be paid to specific beneficiaries. d. All of the above

Question