IDAHO LIFE PRODUCER REGULATION
OF LIFE INSURANCE correctly answered
graded A+
Grace Period - correct answer ✔✔For all payments after the first, policies must have a grace
period of 30 days, or, at the option of the insurer, 1 month, but not less than 30 days, or 4 weeks
for industrial life policies where premiums are payable more frequently than monthly.
The policy will continue in force during the grace period, and insurers may impose an interest
charge not exceeding 6 percent annually.
Incontestability - correct answer ✔✔After a policy has been in force for two years, it becomes
incontestable with respect to the truthfulness of any statements that the insured made in the
insurance application. The policy may be canceled only for nonpayment of premium.
Entire Contract - correct answer ✔✔Policies must contain a provision that the policy, including
any endorsements, constitutes the entire contract of insurance. All statements contained in an
application are, in the absence of fraud, considered representations and not warranties.
*No change in the policy is valid until approved by the insurer. An agent does not have authority
to change the policy or to waive any of its provisions.
Policy Loan - correct answer ✔✔After three full years' premiums have been paid and if the
policy has a cash surrender value with no premium in default, the company, at any time while
the policy is in force, will advance a loan against a life insurance policy with the contract as
security.
Reinstatement - correct answer ✔✔A life insurance policy may be reinstated within three years
upon evidence of insurability and the payment of past-due premiums with interest.
OF LIFE INSURANCE correctly answered
graded A+
Grace Period - correct answer ✔✔For all payments after the first, policies must have a grace
period of 30 days, or, at the option of the insurer, 1 month, but not less than 30 days, or 4 weeks
for industrial life policies where premiums are payable more frequently than monthly.
The policy will continue in force during the grace period, and insurers may impose an interest
charge not exceeding 6 percent annually.
Incontestability - correct answer ✔✔After a policy has been in force for two years, it becomes
incontestable with respect to the truthfulness of any statements that the insured made in the
insurance application. The policy may be canceled only for nonpayment of premium.
Entire Contract - correct answer ✔✔Policies must contain a provision that the policy, including
any endorsements, constitutes the entire contract of insurance. All statements contained in an
application are, in the absence of fraud, considered representations and not warranties.
*No change in the policy is valid until approved by the insurer. An agent does not have authority
to change the policy or to waive any of its provisions.
Policy Loan - correct answer ✔✔After three full years' premiums have been paid and if the
policy has a cash surrender value with no premium in default, the company, at any time while
the policy is in force, will advance a loan against a life insurance policy with the contract as
security.
Reinstatement - correct answer ✔✔A life insurance policy may be reinstated within three years
upon evidence of insurability and the payment of past-due premiums with interest.
