Who does the secondary notice provision protect?
The secondary notice provision protects elderly insureds, and prevents the policy from lapsing for nonpayment of premium after the grace period without the insurer notifying the policyowner and a designated secondary addressee of the impending lapse in coverage.Click to see full answer. Keeping this in view, what is the purpose of a disclosure statement in…
The secondary notice provision protects elderly insureds, and prevents the policy from lapsing for nonpayment of premium after the grace period without the insurer notifying the policyowner and a designated secondary addressee of the impending lapse in coverage.Click to see full answer. Keeping this in view, what is the purpose of a disclosure statement in life insurance policies?The purpose of a disclosure statement is to provide explanatory information regarding the significant features of the insurance policy to enable the insured to make an informed decision regarding purchasing the insurance policy.Beside above, what is a drop down provision in an insurance policy extends coverage beyond? Definition. Drop Down Provision — a clause in umbrella policies providing that the umbrella will “drop down” over reduced or exhausted underlying policy aggregate limits. Some umbrellas maintain their own coverage terms when they drop down; others assume those of the primary policy. Keeping this in view, what is the main purpose of the seven pay test? The 7 pay test is used to test life insurance contracts in three distinct situations. During the first seven years of a life insurance policies life to test total premium payments. To re-test policies if the death benefit is reduced, which will reduce the aggregate 7 pay maximum.What is an insurance policy provision?Policy provisions are clauses in an insurance contract that lay out the exact conditions for which coverage is provided and for what amounts, along with exclusions and other restrictions.
