Which term describes the automatic continuation of coverage?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Which term describes the automatic continuation of coverage?

Explanation:
Automatic continuation of coverage is renewal. When a policy term ends, renewal allows the coverage to continue into a new term under the same contract terms, typically without new underwriting, as long as the premium is paid. This prevents a gap in protection. By contrast, an extension is usually a temporary prolongation that may require agreement or different terms; a lapse means the policy ends due to nonpayment or nonrenewal; cancellation ends the policy entirely. So the best fit for automatic continuation is renewal.

Automatic continuation of coverage is renewal. When a policy term ends, renewal allows the coverage to continue into a new term under the same contract terms, typically without new underwriting, as long as the premium is paid. This prevents a gap in protection. By contrast, an extension is usually a temporary prolongation that may require agreement or different terms; a lapse means the policy ends due to nonpayment or nonrenewal; cancellation ends the policy entirely. So the best fit for automatic continuation is renewal.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy