Question 1

What is the minimum grace period required for a health insurance policy with monthly premium payments?

Accepted Answer

10 days. Policies with monthly premiums must provide at least a 10-day grace period after the premium due date before the policy lapses.

Question 2

What does the 'entire contract' provision in a life insurance policy require?

Accepted Answer

It requires that the policy, along with the attached application, constitutes the entire agreement between the insurer and the insured—no other documents can be incorporated by reference.

Question 3

Under the incontestability clause, after how many years can an insurer generally no longer contest a life insurance policy for misrepresentation?

Accepted Answer

2 years. After the policy has been in force for 2 years, the insurer cannot contest the policy's validity based on misstatements in the application, except in cases of fraud.

Question 4

What does the 'free look' or right to examine provision allow a policyholder to do?

Accepted Answer

It allows the policyholder to review a newly issued policy for a set period (typically 10–30 days) and return it for a full premium refund if not satisfied.

Question 5

What is the purpose of the reinstatement provision in a life insurance policy?

Accepted Answer

It gives the policyholder the right to restore a lapsed policy to active status by paying overdue premiums with interest and providing evidence of insurability, usually within 3–5 years.

Policy Provisions – Life & Health Insurance License Exam

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