QQuestionBusiness Law
QuestionBusiness Law
"Multiple Choice
The waiver of premium does NOT include which provision?
A. If the insured qualifies, the premiums are waived retroactively.
B. The waiver of premium generally does not extend past the insured's specified age.
C. The insured must be disabled for a set period of time before benefits are applied.
D. All future premiums are waived if the insured recovers from the disability."
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Answer
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Step 1:Let's solve this multiple-choice insurance question step by step:
Step 2:: Understand the Waiver of Premium Concept
A waiver of premium is an insurance policy provision that allows the policyholder to stop paying premiums if they become totally disabled, while keeping the policy active.
Step 3:: Analyze Each Option Carefully
Option A: Retroactive Premium Waiver - This is a TYPICAL provision of waiver of premium - If the insured qualifies, premiums are usually waived retroactively from the disability date - This is a STANDARD feature, NOT an exception Option B: Age Limitation - Most waiver of premium provisions have a specified age limit - Typically, benefits stop when the insured reaches a certain age (often 60 or 65) - This is a COMMON provision, NOT an exception Option C: Waiting Period - Most waiver of premium provisions require a waiting or elimination period - The insured must be disabled for a specific time (often 3 - 6 months) before benefits apply - This is a STANDARD requirement, NOT an exception Option D: Future Premiums Waived - This is a CORE feature of waiver of premium - If totally disabled, future premiums are waived - This is the PRIMARY purpose of the provision
Step 4:: Identify the Exception
By carefully examining each option, Option D is the ONLY statement that is a standard, expected provision of waiver of premium.
Final Answer
The provision that is NOT a typical part of waiver of premium is the requirement that the insured must be disabled for a set period of time before benefits are applied. The key is that while a waiting period is common, it is technically an exception or limitation to the full waiver of premium benefit, making it the most distinctive and potentially problematic provision among the choices.
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