Question 21

The Waiver of Premium provision guarantees that the insurance company will pay premiums for the duration of a disability after a predetermined waiting period.

This provision ensures that if the insured becomes disabled, the insurance company will cover the premium payments for the policy, relieving the insured of this financial obligation during their period of disability.

A) insurance company will waive premiums whenever the policy's cash value is sufficient to cover its cost

This option is incorrect because the Waiver of Premium provision does not depend on the policy's cash value. Instead, it specifically addresses the situation where the insured is disabled and unable to pay premiums, not the cash value's sufficiency.

B) insurance company will pay premiums for the duration of a disability after a predetermined waiting period

This option accurately describes the Waiver of Premium provision. It clearly states that the insurance company is responsible for paying the premiums during the insured's disability, which is the primary function of this provision.

C) insured will receive a predetermined amount of money for each week the insured is hospitalized

This option is incorrect as it describes a different benefit that is not related to the Waiver of Premium provision. The Waiver of Premium does not provide financial compensation for hospitalization; it only covers premium payments during a disability.

D) insured may increase the face amount of the policy without providing evidence of insurability

This option is also incorrect as it pertains to policy adjustments rather than the Waiver of Premium provision. The Waiver of Premium primarily concerns the payment of premiums during disability, not adjustments to the policy's face amount.

Conclusion

The correct answer, B, clearly defines the Waiver of Premium provision, highlighting its function in protecting the insured during periods of disability. All other options misinterpret the provision's purpose, focusing on aspects unrelated to the waiver of premium payments in the event of a disability.