74. Which of the following is NOT true about a family life insurance policy? When the family policy covers children
Answer: B
Coverage for children may be converted to permanent insurance but evidence of insurability is required is NOT true about a family life insurance policy.
In a family life insurance policy, coverage for children typically does not require evidence of insurability when converting to permanent insurance, making option B incorrect.
A) all children living with the family are covered even if adopted or born after the insurer issued the policy.
This statement is true regarding family life insurance policies. Such policies generally include coverage for all children living with the family, regardless of whether they were adopted or born after the policy was issued, ensuring comprehensive coverage for the entire family unit.
B) coverage for children may be converted to permanent insurance but evidence of insurability is required.
This statement is incorrect. Typically, family life insurance policies allow for the conversion of children's coverage to permanent insurance without requiring evidence of insurability, which makes this option not true about family life insurance policies.
C) there is no additional charge for covering new additions to the family.
This statement is accurate. Family life insurance policies usually provide coverage for new children born or adopted into the family without imposing additional charges, ensuring that families can expand without incurring extra costs for insurance.
D) the insurance is "term" and for a fixed amount.
This statement is true. Family life insurance policies are generally term policies that provide coverage for a specified period and for a fixed amount, which is a common characteristic of such insurance products.
Conclusion
The correct answer is option B, as it misrepresents the terms of a family life insurance policy regarding the conversion of children's coverage. Options A, C, and D accurately reflect the characteristics of family life insurance policies, highlighting the comprehensive and accommodating nature of such coverage for families. Thus, all other options stand true while B is definitively incorrect.