Policy Provisions, Riders, Underwriting and Consumer Protections
The contract
A life policy is a unilateral, conditional contract of adhesion. The entire contract clause means the policy plus any attached application is the whole agreement - no side promises. Memorize: free look (return for a full refund), incontestability (usually two years, after which the insurer cannot rescind for misrepresentation, though it can always act on nonpayment), grace period, reinstatement (evidence of insurability plus back premiums with interest, typically within three to five years), misstatement of age or sex (benefit is adjusted, not voided), suicide clause (usually two years), and automatic premium loan. Beneficiary rules matter: primary versus contingent, revocable versus irrevocable, per stirpes versus per capita, and spendthrift protection. With no surviving named beneficiary, proceeds go to the estate.
Riders
Waiver of premium, disability income, accidental death and dismemberment, guaranteed insurability, child or grandchild term, accelerated death benefit, long-term care, return of premium, cost-of-living, and payor benefit for juveniles. Know which riders pay at death, which accelerate the death benefit, and which create a living benefit.
Underwriting and consumer protection
Sources include the application, MIB, attending physician statement, paramedical exam, and inspection report. The Fair Credit Reporting Act requires an adverse-action notice when a consumer report drives a decline or rate-up, and HIPAA requires authorization to obtain health information. Producers may not rebate, twist, churn, or arrange STOLI. Complaints go to the Department, and denials carry appeal and external review rights.
Rule of thumb: suicide and contestability clocks start at issue (and restart on reinstatement with a new application), not at delivery. Example: issued January 10, delivered January 25 - a death in February of year three is already outside the two-year contestability window.