My Life and Health Insurance Study Guide- ExamFX 100% VERIFIED ANSWERS 2024/2025, Exams of Organization and Business Administration

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My Life and Health Insurance

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An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? Aleatory: an aleatory contract means unequal amounts are exchanged between payments and benefits What is the Federal Credit Reporting Act? Establishes procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used. Also protects consumers against the circulation of inaccurate or obsolete personal or financial information What are consumer reports? Written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports and other public sources What is an investigative consumer report? Also provide information on the consumer's character, reputation, and habits, but obtained through an investigation and interviews. A reporting agency conducts an investigation and interviews associated, friends and neighbors of the

consumer. These reports can't be made unless the consumer is advised within 3 days of the report request What happens if someone knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses? They are not complying with the Fair Credit Reporting Act and may be fined and/or imprisoned for up to 2 years What happens if someone unknowingly violates the Fair Credit Reporting Act? They become liable in the amount equal to the loss to the consumer as well as any reasonable attorney fees incurred in the process What happens when someone willfully violates the Act enough to constitute a general pattern or business practice? They are subject to a penalty of up to $2, What rights does a consumer have if an insurance policy is declined or modified because of information contained in either consumer report? Must be advised and provided with the name and address of the reporting agency Has the right to know what was in the report Has the right to know the identity of anyone who received a copy of the report during the past year. Has the right to challenge any information in the report and the agency is required to reinvestigate and amend the report. If the report is found to be wrong, it must be corrected and sent out to all parties that have received a report in 2 years. What is MIB? The Medical Information Bureau (MIB) A membership corportation owned by member insurance companies. It's a nonprofit trade organization which receives medical information from insurance companies and maintains confidential information on individuals. It is only used as a way to compare the information you have with other insurance companies and see where you need to look into more. A policy cannot be denied solely because of these reports

What is HIPAA? The Health Insurance Portability and Accountability Act A federal law that protects health information. Provide protection for the privacy of certain individually identifiable health information What are preferred risks? A risk classification used when determining how much risk a consumer is and how much their premium should be Preferred risks are individuals who meet certain requirements and qualify for lower premiums than the standard risk. They have superior physical condition, lifestyle, and habits What are standard risks? A risk classification used when determining how much risk a consumer is and how much their premium should be Standard risks are entitled to insurance protection without extr rating or special restrictions. They are representative of the majority of people their age and with similar lifestyles, average risk. What are substandard risks? A risk classification used when determining how much risk a consumer is and how much their premium should be Substandard (high exposure) are not acceptable at standard rates because o physical condition, personal or family history of disease, occupation, or dangerous habits Also referred to as "rated" because they could be issued the premium "rated up", or higher. What are declined risks? People who are rejected from life insurance A risk may be declined because there is no insurable interest, the applicant is medically unacceptable, the potential for loss is so great it does not meet the definition for insurance, and the insurance is prohibited by public policy or is illegal What is STOLI? Stranger-originated life insurance A life insurance arrangement in which a person with no relationship to the insured purchases a life

policy on the insured's life with the intent of selling the policy to an investor and profiting financially when the insured dies. STOLIs violate the principle of insurable interest When does coverage begin? If payment is collected at the time of application, it begins on the date of the application. If a payment has not been received, it must be received when the policy is delivered and then the start date is the date of delivery What is the USA PATRIOT Act? The Uniting and Strengthening America by Providing Appropriate Toolss Required to Intercept and Obstruct Terrorism Act. Enacted on Oct. 26, 2001 Purpose is to address social, economic, and global initiatives to fight and prevent terrorist activities What are the 3 key factors for life insurance? Mortality, interest and expense A person who does not lock the doors to their house shows an indifferent attitude. This person presents what type of hazard? Morale What are the four aspects of an insurance contract? Agreement, considerations, competent parties, and legal purpose An applicant conceals relevant health information on the application. The applicant presents what type of hazard? Moral What are the three types of agent authority? Expressed, implied, and apparent What are the five characteristics of an ideally insurable risk?

Loss must be due to chance, definite and measurable, statistically predictable, not catastrophic, and coverage cannot be mandatory Insurers are classified according to their domicile. What are the three types of insurers? Domestic, foreign and alien What type of risk is gambling? Speculative and cannot be insured. Who is the beneficiary on a key-person life insurance policy and what is the purpose? The employer. To minimize the risk of financial loss caused by the death of a key employee What type of life insurance offers an applicant a cash value element? Permanent insurance In calculating the amount of life insurance needed, what is the needs approach based on? The predicted needs of a family after the premature death of the insured What is included in Part 2 of a life insurance application? Medical information about the prospective insured When planning for survivor protection in life insurance, what needs to be considered? The insured's current assets, liabilities, and survivor's needs What are the personal uses of life insurance? Survivor protection, estate creation and conservation, cash accumulation and liquidity What does "liquidity" mean in a life insurance policy? Availability of cash value What type of insurance creates an immediate estate? Life insurance

Life insurance may be used to pay state inheritance taxes and federal estate taxes eliminating the need to sell assets from the estate. What is this called? Estate conservation Mortality tables are used by insurance companies to predict what? Life expectancy and the death rates for specific groups of individuals What is the term that describes the frequency and the amount of the premium payment? Premium mode An insured received a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have? Variable What type of policy is typically issued without proof of insurability from the insured? Group policy What are the three factors that determine the premium for a particular life insurance policy? Mortality, interest, and expense What type of insurance would perform the function of cash accumulation? Life insurance What are the three main instances when insurable interest exists in life insurance? Insuring your own life, the life of a family member, or the life of a business partner or someone who has a financial obligation to the policy owner When must the policy summary for a life insurance policy be delivered to the policy owner? At the time of policy delivery What are illustrations in a life insurance policy?

Presentations of nonguaranteed elements of the policy If someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should it be? Permanent What is a blackout period for social security benefits? A period of time during which the surviving spouse does not receive benefits What type of policy issues certificates of insurance to the insureds? Group policy All other factors being equal, which premium payment mode will require an overall higher premium: monthly or annual? Monthly What document must a producer provide to the insured during policy replacement? Notice Regarding Replacement A business is the owner and beneficiary of a key-person life policy. When the business collects the policy benefit, how is it taxed? The benefit is received tax free A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how will that affect the death benefit to the beneficiary? The amount of the loan will be subtracted from the death benefit What is the major different between the most common types of whole life policies: Straight Life, Limited Payment and Single Premium? Premium payment mode Who is insured under a juvenile life policy? A minor

Regarding taxation, how does the cash value of a universal life policy accumulate? Tax deferred How is the premium determined in a joint life insurance policy? The premium is based on the average age of the insureds What type of life insurance is best suited to cover a mortgage? Decreasing term If an insured terminates membership in group life insurance, to what type of insurance can the insured convert the coverage? Whole life Who owns a group life insurance contract? The employer (also known as the sponsor of the group) An individual has just borrowed $10,000 on a 5-year note from his bank. The note is due in installments. What type of life insurance policy would be best suited to this situation? Decreasing term What is the main advantage of converting from group life to individual coverage? Evidence of insurability is not required A whole life policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy? Limited-pay whole life In what type of life insurance policies can the policyowner skip premiu payments without the policy lapsing? Universal life During partial withdrawal from a universal life policy, what portion, if any, will be taxed?

Interest earned on the withdrawn cash value In annually renewable term policies, what is the annual premium based upon? The insured's attained age What happens to the premium in an annually renewable term life policy? The premium increases with each renewal What is the purpose of establishing the target premium for a universal life policy? To prevent the policy from lapsing Group life insurance policies are written as what type of insurance? Annually renewable term When does an adjustable life policy accumulate cash value? When the premiums paid are more than the cost of the policy What policy component must decrease in decreasing term insurance? Face amount What are the "living benefits" of whole life insurance? Loan values What type of life insurance policy can be changed from a policy with no cash value to one that generates cash value? Convertible term Universal life policies have two types of interest rates. What are they? Guaranteed and current In variable universal life insurance, to what policy component does the term "variable" refer? Cash value and death benefit

What elements of an adjustable life policy can be changed by the policyowner? The amount and payment period of the premium, the face amount, and the period for protection What type of premium is charged on a straight life policy? A level premium for the life of the insured In term policies, what happens to the premium throughout the term of the policy? The premium remains level Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for what time period? for 20 years or until the insured's death, whichever occurs first What does "level" refer to in level term insurance? Face amount Between adjustable life and universal life policies, which one provides more flexibility to the policyowner? Universal life The policyholder of a whole life insurance policy is also the insured. What age must the insured attain in order to receive the policy's face amount? Age 100 A policy states that it will pay a specified face amount if the insured dies during the 20 year premium-paying period and nothing if death occurs after the 20 year period. What type of policy is this? 20 - year level term What are policy loans not available on term insurance? There is no cash value to borrow against The death protection component of a universal life policy is expressed as what type of coverage?

Annually renewable term When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured? Evidence of insurability What type of life insurance policy is Life Paid-up at Age 65? Limited-pay Whole Life Whole life policies provide protection until the insured reaches what age? Age 100 Wha universal life option has a gradually increasing cash value and a level death benefit? Option A What type of whole life insurance policy generates immediate cash value? Single premium whole life What type of life insurance policy provides permanent protection? Whole life What happens to the cash value when a whole life insurance policy matures? Cash value is paid to the policyowner What are the death benefit options in universal life policies? Option A- level death benefit and Option B- increasing death benefit In a joint life policy, when is the death benefit paid? Upon the first death When would a 20-pay whole life policy endow? When the insured reaches age 100

A limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. The premium is, however, completely paid off in 20 years. What type of whole life insurance policies only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100? Single premium whole life Whole life insurance policies mature when the insured reaches the age of 100. If the owner of the whole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary? The full death benefit Under Option B in a universal life policy, what happens to the death benefit? The death benefit increases each year by the amount of the cash value increases What type of life insurance policy offers pure death protection? Term What are the characteristics of the group that underwriters will consider before issuing a group life policy? Group's purpose, size, financial strength, and turnover What is the purpose of the Automatic Premium Loan provision? To prevent the unintentional lapse of a policy because of nonpayment of the premium What happens to a policy's cash value under an extended term nonforfeiture option? The cash value is converted to the same face amount as in the whole life policy Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death? Principal sum. AD&D coverage only pays for accidental losses and is thus considered a pure form of accidental insurance.

In case of loss of sight or accidental dismemberment, a percentage of the principal sum is paid out, known as the capital sum All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy? It would be lower. Since a survivorship policy is paid after the last death, the "life" of the policy is expected to be longer, making the premium lower What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? Common Disaster Clause. It states that the insurer will proceed as if the insured outlived the beneficiary How is the free look provision best described? It is a mandatory provision found in all life/health policies that allows the insured to return the policy within a specified number of days and receive a full refund of premium if dissatisfied with the policy for any reason What will happen to the premiums in an annually renewable term life policy? They will annually increase with the renewal to adjust to the insured's attained age. Death benefits remain level and there are no cash values L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay? $900 (deductible + 20% of the bill after the deductible) What is the notice of claim? A provision in insurance that spells out the insured's duty to provide the insurer with reasonable notice in the event of a loss How long after an accident does a death have to occur to be eligible under an Accidental Death and Dismemberment insurance policy? 90 days

Which nonforfeiture option provides coverage for the longest period of time? Reduced paid-up provides protection until the insured reaches 100, but the face amount is reduced to what the cash would buy An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would Pay the claim because the accident occurred during the grace period An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer? $500. The first insurer has paid the full available benefit, the second insurer pays anything the first did not cover According to the Entire Contract provision, a policy must contain A copy of the original application for insurance When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called Preferred Provider Organization (PPO) If a subscriber chooses to go to a provider outside the preferred provider, they will have to pay part of the cost A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. What policy is that? Joint Life Policy A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a Cross-purchase plan Each partner buys life insurance on each of the other partners and they are the premium payer and

beneficiary of those policies. The amount of life insurance is equal to each partner's share of the purchase price of the deceased partner's interest in the business In a life settlement contract, whom does the life settlement broker represent? The owner of the policy What must an agent do after an insurer makes a last minute change to a policy? Must alert the customer. If he accepts, the customer must sign a statement acknowledging the changes were explained When an employee terminates coverage under a group insurance policy, coverage continues in force for 31 days Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service? Copayment. A specific dollar amount that must be paid by the member Ex. A member is required to pay $5 or $10 per office visit What document describes an insured's medical history, including diagnoses and treatments? Attending Physician's Statement (APS) When collecting the initial premium, what should the agent issue the applicant? A premium receipt Who must pay for the cost of a medical examination required in the process of underwriting? The insurer. If they require it, they are responsible for the cost. How does the Accidental Death Rider affect a policy? Pays 2 or 3 times the face amount if the death is the result of an accident as defined in the policy and occurs within 90 days of such an accident Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Parts A and B of Medicare, generally If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay? A cash surrender value What must a Medicare supplement policy at least be guaranteed to be? Guaranteed renewable Within how many years must an agent renew an insurance license? 2 years Where in the long term care policy must the insurer state the renewal provision? On the first page The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within what number of days must the hearing be held? 10 days after the request is received. The recipient had/has 30 days to make the request In Texas, the Commissioner of Insurance is Appointed by the governor for a 2 year period Appointment ends Feb 1 of each odd numbered year What is the term for making false statements about the financial condition of any insurer that is intended to injure any person engaged in the business of insurance? Defamation Another name for a substandard risk classification is Rated If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application An applicant who receives a preferred risk classification qualifies for Lower premiums than a person who receives a standard risk. A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will Pay the policy proceeds only if it would have issued the policy. As long as the applicant is found to be insurable as a standard risk, and policy is issued exactly as applied for What is consideration in insurance? Something of value that is transferred between the two parties to form a legal contract Ex. Premium amount paid at the time of application; the promise to pay covered losses When must a buyer's guide be delivered to the applicant? The buyer's guide must be delivered prior to accepting the initial premium unless the policy contains a free-look period, then it may be delivered to the applicant with the policy What is considered a non medical insurance application? An application on which the medical information is completed by the applicant and the agent only What is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? A warranty is a statement guaranteed to be true When is the earliest a policy may go into effect? When the application is signed and a check is given to the agent What describes the specific information about a policy? Policy summary What can an agent NOT do if a change needs to be made to the application for insurance?

Erase, write-out, or obliterate the incorrect answer. What includes information about premium amounts, cash values, surrender values and death benefits for specific policy years? A policy summary What is the definition of a unilateral contract? One-sided: only one party makes an enforceable promise Insurance is the transfer of Risk, not loss apparently What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? $2, What provides an underwriter with information concerning an applicant's health history? The Medical Information Bureau A medical exam provides info on current health If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 5 days What is term insurance? Temporary protection because it only provides coverage for a specific period of time. "Pure life insurance" Provide the greatest amount of coverage for the lowest premium Usually a max age above which coverage will not be offered or renewed No cash value or other living benefits and if an insured dies during term, the policy pays the death benefit to the beneficiary What are the three basic types of term coverage available?

Level, increasing, and decreasing What fluctuates in the different types of term coverage? Regardless of the type of term, the premium stays level throughout the term of the policy. Only the amount of the death benefit may fluctuate, depending on the type of term insurance What happens in a Level term insurance policy? The death benefit does not change throughout the life of the policy Most common type of temporary protection used What happens to the death penalty and premium in a 10-year level term $100,000 policy? Premium stays the same and the death penalty will be the same no matter when the insured dies If the policy renews after 10 years, the premium will be based on the insured's attained age What happens in the annually renewable term? (ART) Premiums stay level for a year and then the policy must be renewed. Usually is guaranteed to be renewable without proof of insurability, but the premium increases due to attained age What happens in a decreasing term policy? A level premium and a death benefit that decreases each year over the duration of the policy term Usually used when the amount of needed protection is time sensitive or decreases over time Usually convertible, but usually not renewable since the death benefit is $0 at the end of the policy term What is a decreasing term policy usually used for? Commonly used to insure the payment of a mortgage or other debts if the insured dies prematurely Amount of coverage decreases as the outstanding load balance decreases What is a return of premium life insurance policy? (ROP) Increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid ROP is paid if the death occurs within a specified period of time or if the insured outlives the policy term

How is a Return of Premium life insurance policy structured differently? Structured to consider the low risk factor of a term policy but at a significant increase in premium cost Traditional policies offer low-cost, simple death benefit for a specified term but no investment component or cash value= term expires and you have no coverage What does it mean if a policy is renewable? Allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability What does it mean if a policy is convertible? The policyholder has the right to convert the policy to a permanent insurance policy without evidence of insurability Premium based on attained age at time of conversion What is permanent life insurance? General term for various forms of life insurance that build cash value and remain in effect for the entire life (or 100) of the insured as long as premium is paid What is the most common type of permanent life insurance? Whole life insurance What is whole life insurance? A type of permanent life insurance Provides lifetime protection and includes a savings element Endows at insured's age 100= the cash value created by the accumulation of premium is scheduled to equal the face amount of the policy at age 100 premiums for whole life are usually higher than for term policies What are the key characteristics of whole life insurance? Level premium throughout whole policy, death benefit is guaranteed and remains level, cash value increases as the accumulation of premium increases and has a guaranteed interest rate, and the policyowner can borrow against the cash value

What is straight life policy? Pays premium until death or age 100 Has the lowest annual premium of common whole life policies What are limited-pay policies? Whole life policies designed so that the premiums for coverage will be completely paid-up will before age 100 Common version is a 20-pay life where coverage is completely paid for in 20 years, or 65-pay life Shorter premium paying period so the annual premium will be higher What is single premium whole life insurance policy? (SPWL) Whole life insurance provides level death benefits until insured's death or age 100 Completely paid up after one premium and generates immediate cash What is adjustable life insurance? Provides the policyowner with the best of both worlds (term and permanent coverage) Insured determines how much coverage is needed and the premium, the insurer decides what policy type to use Always adjustable and convertible What is universal life insurance? also known as flexible premium adjustable life Has flexibility to increase and decrease premium paid, can even skip a payment if the policy has enough cash value to cover payment Also allows owners to withdraw money from the policy, but usually limits What is Option A of universal life insurance? Death benefit remains level while the cash value increases Benefit remains level until a certain point, then the death benefit must stay a certain percentage above the cash value What is option B of universal life insurance?

Increasing death benefit option Death benefit increases as cash value increases What is variable whole life insurance? a level fixed premium, investment based product Fixed premiums and a guaranteed minimum death benefit Cash value is not guaranteed and fluctuates with the performance of the portfolio What is variable universal life insurance? Combo of universal life and variable life Provides the policy owner with flex premiums and an adjustable death benefit like variable life, the policy owner decides where the cash value is invested What is joint life insurance? Single policy for two or more lives. Pays at the first death only Premium is based on joint average age What is survivorship life insurance? "last survivor" policy Pays at last death Premium is based on joint average age What is another term for the accumulation period of an annuity? Pay-in period Variable Life Insurance is based on what kind of premium? Level fixed If the annuitant dies before annuitization occurs, what will the beneficiary receive? Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is An interest-sensitive Whole Life An agent selling variable annuities must be registered with FINRA Who bears all of the investment risk in a fixed annuity? The insurance company Which policy component decreases in decreasing term insurance? Face amount, not cash value The president of a company is starting an annuity and decides that his corporation will be the annuitant. What is correct? That can't happen, the annuitant must be a natural person owners of annuities can be individuals or entities What is the annuitant? The beneficiary of an annuity Must be a natural person What kind of product requires a securities license? Variable annuity What determines the cash value of a variable life policy? The performance of the policy portfolio Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? Universal life

The main difference between immediate and deferred annuities is When the income payments begin What do Equity indexed annuities do? Seek higher returns To sell variable life insurance policies, what must an agent receive? A securities license, a life insurance license, and FINRA registration SEC registration is for securities What best describes what the annuity period is? The period of time during which accumulated money is converted into income payments The policy owner of an adjustable life policy wants to increase the death benefit. What is correct regarding this change? The death benefit can be increased by providing evidence of insurability Why is an equity indexed annuity considered to be a fixed annuity? It has a guaranteed minimum interest rate When an annuity is written, whose life expectancy is taken into account? The annuitant Also the person that received payments from an annuity The annuitant and the owner are often the same people, but don't have to be What two terms are associated directly with the way an annuity is funded? Single payment or periodic payments Annuities are characterized by how they can be paid for If the annuitant dies during the accumulation period, who will receive the annuity benefits? Beneficiary

Periodic payments of accumulated funds best describes An annuity An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n) Equity Indexed annuity What is the waiting period on a Waiver of Premium rider in life insurance policies? 6 months Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? Payor Benefit Children's riders attached to whole life policies are usually issued as what type of insurance? Term, expiring when the minor reaches a certain age What type of insurance would be used for a Return of Premium rider? Increasing term Life income joint and survivor settlement option guarantees Income for 2 or more recipients until they die What, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temp insurance on the insured, or allows amounts of temporary insurance to cover other family members? Term rider may be used to customize a permanent life insurance policy to meet the needs of the policyowner An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?