Principles of Risk Management and Insurance, 13th Edition

Review Questions

1. Briefly explain the following life insurance contractual provisions.

   1. Suicide clause

   2. Grace period

   3. Reinstatement clause

2. 1. a. Describe the incontestable clause in a life insurance policy.

   2. What is the purpose of the incontestable clause?

3. 1. a. Explain the requirements for reinstating a lapsed life insurance policy.

   2. What are the advantages and disadvantages of reinstating a lapsed life insurance policy?

4. Explain the following beneficiary designations.

   1. Primary and contingent beneficiary

   2. Revocable and irrevocable beneficiary

   3. Specific and class beneficiary

5. A life insurance policy is freely assignable to another party. Explain the following types of assignments:

   1. Absolute assignment

   2. Collateral assignment

6. Describe the policy loan provision that ...