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5 Cards in this Set
- Front
- Back
Which policy provision allows life insruance proceeds to be held in trust by the insurance company to shelter them from the creditors of either the policyowner or beneficiary? A. Debtors protection clause B. Spendthrift clause C. Assignement clause D. Facility - of - payment provision |
B. Spendthrift clause |
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Fred owns a $100,000 life policy. He has paid $22,500 in premium since the policy was purchased. Fret dies in a car accident. How much death benefit is paid to the beneficairy his wife Wilma? A. $22,500 B. $50,000 C. $100,000 D. $45,000 |
C. $100,000 |
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Which of the following is not a primary factor in determing life insruance premiums? A. expense B. mortality C. dividends D. interest |
C. dividends |
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When her father died, Mary received $90,000 in death benefit from his life policy. How much of the benefit is taxable? A. $90,000 B. $40,000 C. $50.000 D. $0 |
D. $0 |
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If a whole life policyowner surrenders the policy and takes the cash value as a lump - sum, how much of the lump - sum is taxable? A. None of the lump - sum is taxable B. The amount paid in premium is taxable C. Any cash value over the amound paid in premiums is taxable D. The entire lump - sum is taxable |
C. Any cash value over the amound paid in premiums is taxable |