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A
A clause allowing the insurer to change policy terms at any time
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B
A provision stating that the policy document plus any attached application constitutes the entire agreement between the insurer and policyowner — no oral promises or side agreements outside the written policy are binding
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C
A clause requiring the insured to pass a medical exam annually
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D
A provision limiting the death benefit to the first 3 years of the policy
Why this is the answer
THE ENTIRE CONTRACT CLAUSE is a mandatory provision in virtually all state insurance codes, required to be included in every life insurance policy. PURPOSE: Protects both parties by defining what the contract actually is; prevents disputes about oral promises, side letters, or verbal representations made during the sale. WHAT IT SAYS: The policy document (including any riders and endorsements) + the application (attached to the policy) = the ENTIRE contract; no statement made by an agent or insurer representative outside the policy document is binding; any modification must be in writing and attached to the policy; PROTECTION FOR THE INSURED: The insurer cannot enforce provisions not included in the written policy; PROTECTION FOR THE INSURER: The insured cannot claim benefits based on verbal promises not included in the policy; HOW IT WORKS IN PRACTICE: A policy is issued. The agent told the client the policy covers suicide after 1 year, but the policy has a 2-year suicide exclusion. The policyholder believes the 1-year verbal promise. The entire contract clause means the written 2-year exclusion controls — not the agent's verbal statement; RELATED PROVISION — REPRESENTATIONS VS WARRANTIES: The application attached to the policy includes the applicant's answers to health questions; these answers are 'representations' (believed to be true) rather than 'warranties' (absolutely guaranteed true); misrepresentation must be material to affect coverage.
Source: Life Insurance License Exam, Entire Contract Clause