Question 74

Coverage for children may be converted to permanent insurance but evidence of insurability is required.

This statement is not true about a family life insurance policy. Typically, coverage for children under such policies does not require evidence of insurability when converted to permanent insurance.

A) all children living with the family are covered even if adopted or born after the insurer issued the policy.

This statement is true. Family life insurance policies usually provide coverage for all children living with the insured family, including those who are adopted or born after the policy was issued, ensuring comprehensive protection as family dynamics change.

B) coverage for children may be converted to permanent insurance but evidence of insurability is required.

This statement is incorrect. Generally, children covered under a family life insurance policy can convert their coverage to permanent insurance without the need for evidence of insurability, making this option false.

C) there is no additional charge for covering new additions to the family.

This statement is true. Most family life insurance policies do not impose additional charges for covering new children added to the family, reflecting the policy's intent to provide inclusive coverage for all dependents.

D) the insurance is "term" and for a fixed amount.

This statement is true. Family life insurance policies are typically term insurance policies that provide coverage for a specified period and for a fixed amount, which aligns with standard practices in family protection insurance.

Conclusion

The correct answer is option B, as it inaccurately states that evidence of insurability is required for converting children's coverage to permanent insurance, which is not a common requirement. Options A, C, and D are accurate representations of how family life insurance policies function, thus reinforcing that B is the only statement that does not hold true in this context.