| Course | GF591 Individual Insurance Planning |
|---|---|
| Unit | Unit 4 |
| Paper type | Policy provision reading |
| Length | About 880 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Finance |
| Updated | October 2026 |
Free sample paper for GF591 Unit 4
Three Clauses and a Calendar: A Unit 4 Policy Provision Reading for One Death Claim
[Student Name]
Purdue University Global
GF591: Individual Insurance Planning
Unit 4 Policy Provision Reading
[Instructor Name]
[Date]
The insured, the policy, the dates and the premiums are composite and illustrative; the clauses paraphrase common contract language; the sources cited are real.
Fact Box
1. Policy issued: April 9, 2024. Face amount $600,000, twenty-year term.
2. Annual premium: $1,356, based on the age stated on the application, 47.
3. Premium due: April 9, 2026. Not paid.
4. Death: April 30, 2026, in a highway collision.
5. Correct age at issue: 49, from the birth certificate. The correct annual premium at 49 would have been $1,588.
6. Application answer: "No" to a question about sleep apnea. Medical records later showed a diagnosis a year before the application.
Why the Order Matters
Three provisions apply, and their order is not a matter of style. If the policy had lapsed, nothing else would matter, so the first question is whether coverage was in force. If it was, the second question is whether the insurer can cancel the contract for the misstatement on the application. Only if the contract stands does the third question, how much it pays, arise.
1. Was the Policy in Force? The Grace Period
The clause reads, in substance: "A grace period of 31 days is allowed for payment of each premium after the first. The policy remains in force during the grace period. If the insured dies during the grace period, the overdue premium will be deducted from the proceeds."
The premium fell due on April 9, 2026. Thirty-one days from that date runs to May 10, 2026. The insured died on April 30, the twenty-first day. The policy was in force, and the insurer may deduct the $1,356 premium from the benefit (Black et al., 2015).
Result: coverage was in force on the date of death.
2. Can the Insurer Rescind? The Incontestable Clause
The clause reads, in substance: "This policy will be incontestable after it has been in force during the lifetime of the insured for two years from its date of issue."
The two years ran from April 9, 2024 to April 9, 2026. The insured was alive on April 9, 2026, so the period closed three weeks before his death.
After the contestable period ends, the insurer cannot void the contract for a misstatement on the application, even a material one about sleep apnea, so the question of what he disclosed is closed and only the question of how much is owed remains.
Courts have generally enforced incontestable clauses strictly, even where the insurer shows the application was false. The California Supreme Court held that the clause barred a contest even where an impostor had taken the medical examination (Amex Life Assurance Co. v. Superior Court, 1997). A few states allow exceptions for fraud, and the reading notes that the insurer could check the governing state's rule, but nothing in the facts suggests fraud of that kind.
Result: the insurer cannot rescind.
3. How Much Is Owed? Misstatement of Age
The clause reads, in substance: "If the age of the insured has been misstated, the amount payable will be the amount the premiums paid would have purchased at the correct age."
This clause adjusts the amount rather than the existence of coverage, and it survives the end of the contestable period. Insurers treat age as a pricing fact rather than a ground for avoiding the contract (Rejda et al., 2020).
Other Provisions Checked and Set Aside
Three more clauses were read to confirm they do not change the outcome. The suicide clause, which limits the benefit to a refund of premiums if the insured takes his own life within two years of issue, does not apply: the death was a highway collision, and the two years had passed in any case. The policy carries no accidental death rider, so the collision adds nothing to the benefit. And the beneficiary designation names his spouse, who survived him, so no contingent beneficiary or estate question arises. Recording these checks matters because a reader of the claim file should be able to see that every provision capable of changing the payment was considered, not only the three that ended up deciding it.
Settlement Computation
1. Premium paid at the stated age: $1,356.
2. Correct premium at age 49: $1,588.
3. Ratio: $1,356 divided by $1,588, about 0.8539.
4. Adjusted face: $600,000 times 0.8539, or $512,343.
5. Less the unpaid premium deducted under the grace clause: $1,356.
6. Amount payable to the beneficiary: $510,987.
What Would Have Changed the Result
If the insured had died on April 8, 2026, one day before the contestable period ended, the insurer could have investigated the sleep apnea answer and, if the misstatement were material, rescinded the policy and returned the premiums. If he had died on May 11, after the grace period, the policy would have lapsed and nothing would be payable unless it had a reinstatement right. The outcome turns on dates more than on facts about his health.
Summary
The policy was in force, the contract cannot be voided, and the benefit is reduced for the age misstatement. The beneficiary receives $510,987.
References
Amex Life Assurance Co. v. Superior Court, 14 Cal. 4th 1231 (1997).
Black, K., Jr., Skipper, H. D., & Black, K., III. (2015). Life insurance (15th ed.). Lucretian.
Rejda, G. E., McNamara, M. J., & Rabel, W. H. (2020). Principles of risk management and insurance (14th ed.). Pearson.
GF591 Unit 4 instructions, in plain terms
The fourth GF591 unit gives you policy provisions and a set of facts and asks what the beneficiary receives. Start with a fact box that fixes every date and amount. Explain the order in which provisions must be applied before applying any: whether the policy was in force, then whether the insurer can undo it, then how much it pays. For each provision, quote the supplied wording briefly, apply it to the dates with a count, and state the result in one sentence. Note where state law or court decisions shape a clause and flag any question that depends on the governing state. Compute the settlement step by step. Check other clauses that could change the payment and record why they do not. Close by showing which changed facts would have changed the result. Cite a life insurance text and any case law you rely on in APA 7.
Inside the GF591 Unit 4 example
A fact box opens the reading with the issue date, face amount, stated and correct premiums, the unpaid premium date, the death date, the correct age and the sleep apnea answer. A section explains the order of the three questions. The grace clause is quoted and applied, with the 31 days running to May 10, citing Black and colleagues. Next comes the incontestable clause, where the highlighted line shows why the misstatement can no longer void the contract, citing the Amex Life decision and flagging state fraud exceptions. The misstatement of age clause is applied, citing Rejda and colleagues. Suicide, accidental death and beneficiary clauses are checked and set aside. A six-step settlement reaches $510,987, and a section shows how a death one day earlier or a month later would have changed everything.
Where the points sit in the GF591 Unit 4 rubric
Credit on a GF591 provision reading starts with a complete fact box and an explained order, because applying clauses in the wrong sequence can produce an answer that is legally impossible. Graders then look for each clause quoted briefly, applied with a date count and closed with a one-sentence result. Recognizing that misstatement of age survives the contestable period, while rescission does not, is where much of the analytical credit sits. Instructors in the MS in Finance program value awareness of state variation and case law, flagged without overreaching, and a settlement computed in visible steps from the stated premium to the final check. Checking other clauses and showing which facts would change the result earns further marks. The Amex Life case, Black's life insurance text and the Rejda risk text supply the support this reading expects.
GF591 Unit 4 help: mistakes that cost points
Weak GF591 Unit 4 readings describe what each clause usually does and never count the actual days in the case. Others start with the misstatement and never ask whether the policy was in force. Grace periods are counted from the wrong date, or the overdue premium is not deducted. The incontestable clause is treated as if it also blocks the age adjustment. State variation is ignored, or the paper becomes a survey of every state's rule. Settlements jump to a final figure without steps. If your prompt supplies different clauses, such as a suicide exclusion or a reinstatement provision, keep the same discipline: a fact box, the order explained, each clause quoted and applied with a count, a one-line result for each, a computed settlement and the facts that would change it.
Get a GF591 Unit 4 example written to your instructions
Attach the policy excerpts and claimant facts your GF591 Unit 4 prompt supplies, along with the rubric. The reading you get back fixes the dates first, applies each clause in a defensible order, states a one-sentence result for each and reconciles the settlement amount to the language. A first sample costs nothing; expect it within 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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GF591 Unit 4 questions, answered
Does the order of provisions really matter?
It does when one clause can make another irrelevant. If the policy had lapsed, nothing about contestability or age would matter, so in-force status is settled first. The sample then asks whether the contract can be undone, and only after that how much it pays. Explaining that sequence in two sentences shows the grader the reasoning is deliberate.
What if the prompt's excerpt differs from standard policy language?
Use the excerpt. Graduate prompts sometimes alter a grace period, a contestable term or an exclusion precisely to see whether the writer reads the supplied text or recites a textbook version. The sample quotes every clause it applies. If the excerpt is silent on something, such as fraud after the contestable period, say so and name who would decide it.
Should state insurance law be cited?
Only as far as the prompt reaches. Many provisions exist because state codes require them, and a sentence noting that is useful. Researching every state's rule is not the task. The sample flags one open question for the governing jurisdiction and resolves everything else from the policy language itself, which is what most Unit 4 prompts ask for.
Where can I find a free GF591 Unit 4 sample paper?
This page holds a full GF591 Unit 4 policy provision reading that applies the grace, incontestable and misstatement of age clauses to one death claim, with a settlement of $510,987 and APA 7 references.
Why can the insurer still reduce the benefit after the contestable period?
The misstatement of age clause adjusts how much is paid rather than whether the contract stands. It is designed to survive the contestable period, so the benefit becomes what $1,356 would have bought at the correct age of 49.