Chapter 3 Practice Question

What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?

It determines who receives policy benefits if the primary beneficiary is deceased.

A policy owner who is also the insured wants to name her husband as a beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the

Revocable beneficiary

Which of the following statement is true concerning irrevocable beneficiaries? If a life insurance policy has an irrevocable beneficiary designation

They can be changed only with the written consent of that beneficiary. The beneficiary can only be changed with written permission of the beneficiary.

When a life insurance policy was issued, the policy owner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same Car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

Insured's contingent beneficiary

In a case where the primary beneficiary Pre-decreases the insured, in the event of deaths, the death benefit proceeds will be paid to

The contingent beneficiary

A 40-year old man buys a whole life policy & names his wife as his only beneficiary. His wife does 10 years later. He never remarries & dies at age 61, leaving 2 grown up children. Assuming he never changed the beneficiary, the policy proceeds will go to

The insured estaye

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

contingent beneficiary

An injured and his wife are both involved in a head on collision. The husband dies instantly, and a white victin 10 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy have a provision?

Common disaster

The sole beneficiary of a life insurance policy dies before the insured. If the policyowner does not amend the beneficiary designation, what will happen to the policy's death benefit?

The insured's estate

Which of the following named beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insurance death?

A minor son of the insured

What is the clause that describes the message of paying a death benefit in the event that the insured and beneficiary are both killed in the same accident?

Comon Disaster Clause The common disaster clause provision states that when an insured and beneficiary die in a common accident, and the beneficiary dies before or within a specific period of time after the insured, the insurer will proceed as if the insured outlived the beneficiary.

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceases the insured