Author Question: Bruce lied about his health history when he purchased a life insurance policy. He died 3 years after ... (Read 306 times)

futuristic · **on:** Jul 11, 2018

Bruce lied about his health history when he purchased a life insurance policy. He died 3 years after the policy was issued.

Which life insurance policy provision will require the life insurer to pay the beneficiary even though Bruce lied on the application?
A) incontestable clause
B) entire contract clause
C) ownership clause
D) change-of-plan provision

Question 2

Tim purchased a 10-payment whole life insurance policy 15 years ago. Tim would like to donate this paid-up policy to a charity. Under which policy provision can Tim transfer all ownership rights in the policy to the charity?

A) absolute assignment
B) extended term nonforfeiture option
C) reinstatement
D) collateral assignment