How many months can a life insurance policy normally be backdated from the date of application quizlet?
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iextremely important in life insurance. Without this requirement, people could purchase life insurance and the policy would be nothing more than a wagering contract (insurance policy which is made when the insured has no insurable interest. It is a contract purporting to be one of insurance but which does not qualify as such for want of a sufficient insurable interest. ... A wager policy is also called gambling policy.) Show As we have established, an insurable interest exists when the death of the insured would have a clear financial impact on the policy owner. Individuals are generally presumed to have an unlimited insurable interest in themselves.Therefore, when the applicant and proposed insured is the same person, there is no question that insurable interest exists. Questions are raised, however, with third-party contracts (those in which the applicant is not the insured). Some relationships are automatically presumed to qualify as insurable interest-spouses, parents, children, and certain business relationships insurable interest can NOT be established sufficiently by sentimental attachment alone. ► An individual has an insurable interest in his or her life It bears repeating that with life insurance, an insurable interest must exist only at the policy inception. It does NOT necessarily have to exist when the policy proceeds are actually paid. Thus, a policy owner could assign a life policy to someone who has no insurable interest in the insured, and the assignment would nonetheless be valid. Part I of the application asks general questions about the proposed insured, including name, age, address, birth date, sex, income, marital status, and occupation. Details about the requested insurance coverage are also included in Part I such as: ► Type of policy Other information sought may indicate possible exposure to a hazardous hobby, foreign travel, aviation activity, or military service. Whether the proposed insured smokes is also indicated in Part I. As we have learned, the premiums required to support a life insurance policy are determined, in part, by the insured's age. If an applicant can be treated by the insurance company as being a year younger, the result can be a lifetime of slightly lower premiums. Insurance companies will allow you to "save age" if your birthday (or 1/2 birthday) are within 2 months of the date the policy is approved. If you choose to save age, that means the company will date the policy the day before your age change. As a result, your premiums will be due as of that age. The purpose of backdating a life insurance policy is to use premiums based on an earlier age. Thus, it is understandable that applicants might want to backdate a policy, making it effective at an earlier date than the present. Many insurers are willing to let an applicant backdate (or "save age") a policy. However, there are some important conditions that must be met before this step can be taken. First of all, the insurer must allow backdating. Second, the company will usually impose a time limit on how far back a policy can be backdated (typically six months). More important, the policyowner is required to pay all back-due premiums and the next premium is due at the backdated anniversary date. After the underwriting is complete and the company has decided to issue the policy, other offices in the company assume the responsibility for issuing the policy. Once issued, the insurance contract is sent to the sales agent for delivery to the applicant. The policy usually is not sent directly to the policyowner since, as an important legal document, it should be explained by the sales agent to the policyowner. Question 1 The application is completed under oath, so it may be voided. one year a written request or application for reinstatement The beneficiary gets the policy's cash surrender value, if any. Question 1 Karen must pay the premiums. one year from the application date 30 days Most states do allow a policy to be backdated up to six months. Question 1 borrow against any cash value that exceeds the loan security amount *representations There is no way of determining
how much more or less Mary will be paying by increasing the frequency of her premium payments. offer How many months can life insurance policy normally be backdated from the date of application?Most life insurance companies allow you to backdate your policy a maximum of six months or up to your last half birthday, whichever is the shortest amount of time.
How many months can a life insurance policy normally?Term life insurance is often the most accessible type of insurance to purchase. Depending on the type of policy, you may or may not need a medical exam, and the policy will last for an agreed-upon number of years, often 20- or 30-year terms.
What happens when an insured policy is backdated?Backdated liability insurance provides coverage for a claim that occurred before the insurance policy was purchased. Backdated liability insurance is not an insurance product frequently offered by insurers since the insurer cannot be certain how much the loss will amount to.
How long is the grace period for an individual life insurance policy quizlet?Typically, a life insurance policy's grace period extends for either 30 or 31 days after the date in which the premium is normally due.
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