Life Policy ProvisionsQuestion 171 of 315
A convertible term policy is converted to a permanent policy in the fourth year of coverage. Which best describes the conversion?
a.The insured must complete a new medical exam to qualify
b.The new permanent policy is issued at the insured's original issue age and original health class only
c.The conversion can occur without evidence of insurability, and the new permanent policy's premium is based on either attained age or original age, per policy terms
d.The conversion is allowed only at the end of the term period
Explanation
The conversion privilege lets the policyowner exchange a convertible term policy for a permanent policy without showing evidence of insurability, as long as it is exercised within the conversion period defined in the policy. The new permanent policy's premium is set using either the attained-age method or the original-age method, depending on what the policy allows.
Law Reference: Cal. Ins. Code §10209.5Practice all 315 questions free — no signup required.
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