cHAPTER 3 rIDERS, pROVISIONS, oPTIONS AND EXCLUSIONS.

policy provisions

rules baked into every policy. The ‘NAIC' (National association of insurance commissions)

Entire contract

what counts as a contract

-policy itself

-your original application

-add ons (riders)

Insuring Clause “insuring agreement"

Both parties the insurer + insured agree “make a promsie" signing a contract.

ex.) Insurer promises to pay the death benefit upon insured's death.

For the insured WHAT TYPE OF CLAUSE is found on the first page of the policy THAT CONTAINS:

-who's covered?

-death benefit amount?

-premium payment amount?

• How long coverage lasts?

Free L00k provisioin

allows the policy holder a specific # of days from the receipt to review the policy and return it for a full premium refund if dissatisfied.

This period ____ ____ begins when the policy holder recieves the policy.

Consideration provision is a type of contract that?

only works if both parties give something of value

ex.) insured: makes premium payments+ an honest application answers

insurer: promises to pay the death benefit.

Owner rights provision = ONNLY the policy owner has owner right!

Those rights included?

-chossing/changing beneficary's

-selecting payment options for receiving benefits

-assigning policy

-recieviing the policy living benefits

What does an insurance contract has?

-insurance provider

-policy owner & insurued = can be the same people or different ppl

-beneficaries

3rd part ownership provision is ?

if the policy owner and the insured are different individuals

ex.) spouse, bussiness partner

Assignments Provision