What is the actual meaning of provision?

Definition of provision

(Entry 1 of 2) 1a : the act or process of providing. b : the fact or state of being prepared beforehand. c : a measure taken beforehand to deal with a need or contingency : preparation made provision for replacements.

What is an example of a provision?

Provision is defined as a supply of something or to the act of providing a supply of something. An example of provision is food you take with you on a hike. An example of provision is when legal aid provides legal advice. A particular requirement in a law, rule, agreement, or document.

What does provisions of a policy mean?

Policy provisions are clauses in an insurance contract that lay out the exact conditions for which coverage is provided and for what amounts, along with exclusions and other restrictions.

What is no provision means?

a statement within an agreement or a law that a particular thing must happen or be done, especially before another can happen or be done.

What is a mandatory provision?

Their language is characterized by such directive terms as “shall” as opposed to “may.” A mandatory provision is one that must be observed, whereas a directory provision is optional. An example of a mandatory provision is a law that provides that an election judge must endorse his or her initials on a ballot.

Who is an insured provision?

Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance avail- able to that organization. 17.

What is a provision in the Constitution?

A constitutional provision is a specifically designated rule/law within a nation or state’s constitution. Provisions cannot be changed through court or common law, regardless of the circumstances that may arise.

Which is a required provision in a health insurance policy?

a physical exam and autopsy provision – allows an insurance company to request regular physical exams or an autopsy. a legal actions clause – the minimum and maximum amount of time the policyholder can take legal action after providing proof of loss.

What is the legal action provision in a health contract?

The legal actions provision prohibits insureds from taking legal action against the insurer due to a claim for 60 days from the date of proof of loss if the claim is disputed.

How the directory and mandatory provisions are interpreted?

While usually in order to ascertain whether a statute is mandatory or directory, one must apply the rules relating to the construction of statutes; yet it may be stated, as a general rule, that those whose provisions relate to the essence of the thing to be performed or to matters of substance, are mandatory, and those …

What is the purpose of the time of Payment of claims provision?

The purpose of the Time of Payment of Claims provision is to prevent the insurance company from delaying claim payments.

What is the most favorable renewability provision for the insured?

The more favorable the renewability provision is to the insured, the higher the premium. The less favorable the renewability provision is to the insured, the lower the premium.

What happens when an insurance policy is backdated?

What happens when an insurance policy is backdated? Backdating your life insurance policy gets you cheaper premiums based on your actual age rather than your nearest physical age or your insurance age. You’ll pay additional premiums upfront to account for the policy’s backdate.

Which of the following correctly explains the actions an agent should?

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? Complete the application and review the information with the customer prior to obtaining the customer’s signature, then send the application off to the insurance company.

How long will the beneficiary receive payments under the single life?

A life annuity with period certain is a hybrid option that provides lifetime payments with guaranteed income for a specified number of years. For example, if you purchase a single-life annuity with a 20-year period certain and pass away 10 years later, your beneficiary will collect income benefits for another 10 years.

Which type of renewability best describes?

Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate? “Guaranteed Renewable“.

How long can a cash surrender value payment be deferred?

A company shall reserve the right to defer payment of any cash surrender value for a period of six months after demand for payment of the cash surrender value and surrender of the policy.

Which of the following does Social Security not provide benefits for?

Social Security doesn’t provide temporary or partial disability benefits, like workers’ compensation or veterans’ benefits do. To receive disability benefits, a person must meet the definition of disability under the Social Security Act (Act).

Which of these is not a reason for a business to buy key person?

Which of these is NOT a reason for a business to buy key person life insurance? The correct answer is “A pension deficiency if the key employee dies“.

Do I have to pay taxes on a cashed in life insurance policy?

Is life insurance taxable if you cash it in? In most cases, your beneficiary won’t have to pay income taxes on the death benefit. But if you want to cash in your policy, it may be taxable. If you have a cash-value policy, withdrawing more than your basis (the money it’s gained) is taxable as ordinary income.

Is cash value and surrender value the same?

Let’s look at the difference between the policy’s cash value and surrender value: Cash value is the amount of money you have in your policy that earns interest over time due to premium payments. Surrender value is the amount of money that a policyholder gets when terminating or cashing out the policy.