California Insurance License Exam Practice Test Practice Question
The insured is totally and permanently disabled. The insured's policy continues in force without payment of further premiums because the policy contains a
Correct Answer: B
Rationale: A waiver of premium provision allows the insured to maintain their policy without making premium payments in the event of total and permanent disability. This ensures coverage continues during a critical time without financial burden.
Option A, guaranteed insurability provision, allows for future coverage increases without medical evidence but does not address premium payments. Option C, reinstatement provision, pertains to reactivating a lapsed policy and is irrelevant here. Option D, grace period provision, provides a short time frame to pay overdue premiums but does not eliminate the need for payment in the case of disability.
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