Chapter exam premiums and proceeds
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the Policyowner?
Irrevocable beneficiary
Which of the following best describes a contingent beneficiary?
Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured
A primary beneficiary has died before the insured in a life insurance policy. Contingent beneficiary is also named on the policy. Which of the following will occur when the insured dies?
Proceeds will go to the contingent beneficiary
T is covered by an Accidental Death and Dismemberment (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
The Common Disaster Clause provides that if both the insured and the sole in the beneficiary were to die in a common accident which of the following is true?
The clause provides the payment of the proceeds to the insured's estate
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the
beneficiary
A level premium indicates
the premium is fixed for the entire duration of the contract