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22 Cards in this Set
- Front
- Back
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J would like to maintain the right to change beneficiary. Which beneficiary should should be used? |
Revocable |
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M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at any time. What type of beneficiary is his son? |
Revocable |
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K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? -Proceeds will be divided equally between K's and P's estate -Proceeds will be paid to K's estate -The courts will decide who will receive death benefits |
Proceeds will be paid to P's estate |
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Which statement is true regarding a minor beneficiary? -Normally the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 -Normally, a guardian is required to be appointed in the Beneficiary clause of the contract -The minor must pay the debts of the insured's estate before receiving any of the proceeds -The minor is entitled to receive the death proceeds immediately |
Normally a guardian is required to be appointed in the Beneficiary clause of the contract |
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C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or age attained. What factor would affect her decision the most? |
The cost |
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If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act? |
Insured's contingent beneficiary |
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Which premium schedule results in the lowest cost to the policyowner? |
Annual |
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A policyowner is allowed to pay premiums more than once a year under which provision? |
Mode of Premium |
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An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? |
Proceeds will go to the contingent beneficiary |
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What is the title of the life insurance whose designation may not be changed by the policyowner withouth the consent of the beneficiary? |
Irrevocable |
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T and S are named co-primary beneficiaries on a $500k Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? |
$0 |
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Which statement regarding the Change of Beneficiary provision is true? -The policyowner can change the beneficiary -The insured can change the beneficiary -A beneficiary change is subject to underwriting procedures |
The policyowner can change the beneficiary |
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A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? |
Irrevocable |
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A policyowner is able to choose the frequency of premium payments through what policy feature? |
Premium Mode |
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What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made? |
Irrevocable beneficiary |
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A policyowner's rights are limited under which beneficiary designation? |
Irrevocable |
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A level premium indicates |
the premium is fixed for the entire duration of the contract |
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J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct? -The gross premium is higher on a monthly payment mode as compared to being paid annually -The gross premium is lower on a monthly payment mode as compared to being paid annually -The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis -The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis |
The gross premium is higher on a monthly payment mode as compared to being paid annually |
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Methods of distributing Life Insurance Policy death proceeds, other than lump sum payment, are called |
settlement options |
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What is the underlying concept regarding level premiums? |
The early years are charged more than what is needed |
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P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to |
P only |
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T is covered by an AD&D policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? |
Request of the change will be refused |
