Rhode Island Life Insurance Practice Exam

What provision stops an insurer from altering contract terms by referring to external documents?

1. Entire Contract Provision

2. Misstatement of Age Provision

3. Incontestability Clause

4. Renewability Provision

The correct answer is: Entire Contract Provision

The Entire Contract Provision is the correct choice because it ensures that the insurance policy is comprehensive and complete by stating that the policy itself represents the entirety of the agreement between the insurer and the insured. This means that no changes, alterations, or additional terms can be added to the contract that are not included within the actual document of the insurance policy. This provision guarantees that all parties are clear on the terms and conditions set forth, preventing any external documentation, conversations, or representations from modifying the official contract. It is designed to protect the policyholder by ensuring that they have the rights and benefits they agreed to at the outset of the insurance agreement without the risk of unexpected changes being introduced later. Regarding the other choices, the Misstatement of Age Provision pertains to what happens if a policyholder misstates their age, affecting the benefits paid out but does not address alterations to contract terms. The Incontestability Clause generally prevents insurers from disputing the validity of a policy after a specified period, which also doesn’t relate to external documentation. The Renewability Provision deals with the conditions under which a policy can be renewed but does not limit changes based on outside documents.