Tennessee Insurance Practice Exam

Which statement about the Waiver of Premium provision is NOT correct?

1. The insured must be under 60 years of age

2. Coverage continues without premium payments

3. Insured must be eligible for Social Security disability for claim to be accepted

4. This rider applies only to permanent policies

The correct answer is: Insured must be eligible for Social Security disability for claim to be accepted

The Waiver of Premium provision is designed to protect policyholders by allowing them to maintain their insurance coverage without having to pay premiums if they become disabled. The correct statement from your choices identifies that one of the conditions under this provision does not necessitate that the insured be eligible for Social Security disability for a claim to be accepted. While many insurance policies include a requirement related to the insured's disability status, the specifics can vary significantly between insurance providers and policies. Therefore, the assertion that the insured's eligibility for Social Security disability is essential is not universally true. Insurers may have their own criteria to establish what disability qualifies for the waiver, which could differ from Social Security Administration standards. The other options encompass key characteristics of the Waiver of Premium provision: individuals typically must be under a certain age for eligibility (often 60), coverage indeed continues without the need for further premium payments during the period of disability, and this provision often applies mainly to permanent policies, which typically feature more long-term coverage structures compared to term policies.