South Carolina Life and Health Practice Exam

Which provision is NOT included in the waiver of premium?

1. All future premiums are waived if the insured recovers from the disability

2. Premiums are waived during disability

3. Coverage remains in force during the waiver period

4. The insured must notify the insurer of the disability

The correct answer is: All future premiums are waived if the insured recovers from the disability

The correct option indicates a misunderstanding of the waiver of premium provision. A waiver of premium provision typically states that premiums are waived while the insured is disabled, ensuring that the coverage remains in effect without requiring premium payments. To clarify, the waiver of premium does not include the guarantee that all future premiums are waived if the insured recovers from the disability. Generally, once the insured recovers and returns to work, they will be responsible for resuming premium payments moving forward. The key components of the waiver of premium provision include that premiums are waived during the period of disability, coverage remains active during that time, and the insured is often required to notify the insurer of their disability to activate the waiver. Identifying that the future waiver of premiums post-recovery is not standard helps clarify why the initial choice is not a typical part of the waiver provision.