Exam (elaborations)
LOMA 281 MODULE 3 QUESTIONS AND ANSWERS
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LOMA 281 MODULE 3 QUESTIONS AND ANSWERS
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LOMA 281 MODULE 3 QUESTIONS AND ANSWERSWaiver of premium for disability benefit - Answers- A supplemental life insurance policy
benefit under which the insurer promises to give up - to waive - its right to collect
premiums that become due while the insured is totally disabled.
Waiver of premium for payor benefit - Answers- A supplemental life insurance policy
benefit under which the insurer agrees to waive its right to collect a policy's renewal
premiums if the policyowner dies or becomes totally disabled.
Disability income benefit - Answers- A supplemental life insurance policy benefit that
provides a monthly income benefit to the policyowner-insured if he become totally
disabled when the policy is in force.
Accidental death benefit - Answers- A supplemental life insurance policy benefit that
provides a death benefit, in addition to the policy's basic death benefit, if the insured
dies as a result of an accident.
Accidental death and dismemberment benefit - Answers- A supplemental life insurance
policy benefit that provides an accidental death benefit and provides a dismemberment
benefit payable if an accident causes the insured to lose any two limbs or sight in both
eyes.
Accelerated death benefit - Answers- A supplemental life insurance policy benefit that
gives a policyowner-insured the right to receive all or part of the policy's death benefit
before her death, if certain conditions are met.
Terminal illness benefit - Answers- An accelerated death benefit under which the
insurer pays a portion of a life insurance policy's death benefit to a policyowner-insured
who suffers from a terminal illness and has a physician-certified life expectancy of 12
months or less.
Dread disease benefit - Answers- An accidental death benefit under which the insurer
agrees to pay a portion of the life insurance policy's face amount to the policyowner if
the insured suffers from one of a number of specified diseases.
Long term care insurance benefit - Answers- An accelerated death benefit under which
the insurer agrees to pay a monthly benefit to a life insurance policyowner if the insured
requires constant care for a medical condition.
Spouse and children's insurance rider - Answers- A supplemental life insurance policy
benefit that provides term life insurance coverage on the insured's spouse and children.
Children's insurance rider - Answers- A supplemental life insurance policy benefit that
provides term life insurance coverage on the insured's children.
, Second insured rider - Answers- A supplemental life insurance policy benefit that
provides term insurance coverage on the life of a person other than the policy's insured.
Guaranteed insurability benefit - Answers- A supplemental life insurance policy benefit
that gives the policyowner the right to purchase additional insurance of the same type
as the basic life insurance policy - for an additional premium amount - on specified
option dates during the life of the policy without supplying evidence of the insured's
insurability.
Paid up additions option benefit - Answers- A supplemental life insurance policy benefit
that allows the policyowner of a whole life insurance policy to purchase singe-premium
paid-up additions to the policy on stated dates in the future without providing evidence
of the insured's insurability.
Entire contract provision - Answers- An insurance policy provision that defines the
documents that constitute the contract between the insurance company and the
policyowner.
Closed contract - Answers- A contract for which only those terms and conditions that
are printed on - or attached to - the contract are considered to be part of the contract.
Open contract - Answers- A contract that identifies the documents that constitute the
contract between the parties, but the enumerated documents are not all attached to the
contract.
Free look provision - Answers- An individual life insurance policy provision that gives
the policyowner a stated period of time - usually 10 days - after the policy is delivered in
which to examine the policy.
Incontestability provision - Answers- An insurance 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.
Misrepresenation - Answers- A false or misleading statement in an application for
insurance.
Material misrepresentation - Answers- A misrepresentation that would affect an
insurance company's evaluation of a proposed insured and, thus, gives the insurer
grounds to avoid an insurance contract.
Fraudulent misrepresentation - Answers- A misrepresentation that was made with the
intent to induce the other party to enter into a contract and that did induce the innocent
party to enter into the contract.
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