West Virginia State Life Insurance Practice Exam

Which provision guarantees that premiums will be waived if the owner of a juvenile life policy becomes disabled?

1. Premium Waiver Provision

2. Payor Clause

3. Conversion Provision

4. Disability Benefit Clause

The correct answer is: Payor Clause

The correct answer is the Payor Clause. This provision is specifically designed to address situations where the adult payor of a juvenile life policy becomes disabled. In such cases, the Payor Clause allows for the waiver of premiums, ensuring that the policy continues to be in force without the need for the adult to make payments during their period of disability. Juvenile life insurance policies are often taken out by a parent or guardian for a child, and the Payor Clause provides a safeguard by protecting the policy from lapsing due to non-payment of premiums if the person responsible for the payments can no longer do so because of a disability. This is particularly important as it ensures that the coverage for the child remains intact, securing their financial protection despite the adult's circumstances. Other provisions mentioned do not specifically address the waiving of premiums due to the disability of the owner. For example, the Premium Waiver Provision generally refers to the waiving of premiums in cases where the insured becomes disabled, which is not the same as the owner of a juvenile policy. The Conversion Provision typically allows for the conversion of a juvenile policy into an adult policy at a specified age or event but does not involve premium payment waivers. The Disability Benefit Clause relates more to providing benefits directly