When are non-forfeiture provisions used? a. when the insured names a beneficiary b. when the insured stops making premium payments on a cash value policy c. when the insured converts a term policy d. when the insured dies and there is a settlement

Question

Ashley Fry

Mathematics

3 September, 23:14

When are non-forfeiture provisions used? a. when the insured names a beneficiary b. when the insured stops making premium payments on a cash value policy c. when the insured converts a term policy d. when the insured dies and there is a settlement

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Amiya Patterson · Answer 1

Answer: The answer is (b). when the insured stops making premium payments on a cash value policy.

Step-by-step explanation: According to an insurance policy, the non-forfriture provisions are used when the insured stops paying their premium which results in a policy lapse.

In fact, a non forfeiture clause will only stay in effect for a certain time period or it may only become active if the policy has been in force for a certain amount of time.

Thus, the correct option is (b).