15. The insured is totally and permanently disabled. The insured's policy continues in force without payment of further premiums because the policy contains a
Answer: B
The policy continues in force without payment of further premiums due to a waiver of premium provision.
In the case of a totally and permanently disabled insured, the policy remains active without the need for premium payments because it includes a waiver of premium provision.
A) guaranteed insurability provision.
A guaranteed insurability provision allows the insured to purchase additional coverage without evidence of insurability at certain times, but it does not provide for the continuation of the policy without premium payments in the event of total and permanent disability.
B) waiver of premium provision.
The waiver of premium provision is specifically designed for situations where the insured becomes totally and permanently disabled. Under this provision, the insurance company waives the obligation to pay premiums, allowing the policy to remain in force without additional costs to the insured.
C) reinstatement provision.
A reinstatement provision allows a lapsed policy to be reinstated under certain conditions, but it does not address premium payments during a period of disability. Therefore, it does not apply in the context of continuing a policy without premium payments due to total and permanent disability.
D) grace period provision.
The grace period provision provides a limited time after the premium due date during which the policy remains in force even if the premium has not been paid. However, this does not relate to the scenario of permanent disability, as it is not a long-term solution for premium waivers.
Conclusion
The waiver of premium provision is crucial in this context, as it directly addresses the situation of total and permanent disability by allowing the insured to maintain their policy without further premium payments. Unlike the other options, which either do not relate to the issue of premium payments during disability or serve different purposes, the waiver of premium provision is the definitive solution for ensuring continued coverage in such circumstances.