Chapter Exam: Life Premiums and Benefits
When can a policy-owner change a revocable beneficiary?
Anytime
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
A whole life insurance policy-owner does not wish to continue making premium payments. Which of the following enables the policy-owner to sell the policy for more than its cash value?
Life settlement contract
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: the person who survived
On a life insurance policy, who is qualified to change the beneficiary designation?
Policy-owner
Who has the right to change a revocable beneficiary?
Policy-owner
Which premium schedule results in the lowest cost to the policy-owner?
Annual
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed.
T and S are named co-primary beneficiaries on a $500,000 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 Because the sole beneficiary is still alive
Which of these is NOT an element of Life insurance premiums?
Morbidity rate
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract.
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 payable to K's estate if P dies within a specified time.
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
A level premium indicates:
The premium is fixed for the entire duration of the contract.
