Taxes, retirement and other insurance concepts

Who is a third-party owner?

A policyowner who is not the insured

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

What type of life insurance is most commonly used for group plans?

Annually renewable term

In group life policies, a certificate of insurance is given to

Each insured person

An employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?

Join during the open enrollment period

All of the following statements are true regarding group insurance EXCEPT

Participants in the policy each receive a policy.

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

In a single employer group plan, what is the name of the policy issued to the employer?

Master contract

If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may

Require evidence of insurability.

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and women in the group.

In a life settlement contract, whom does the life settlement broker represent?

The owner

Which of the following best defines the "owner" as it pertains to life settlement contracts?

The policyowner of the life insurance policy

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Third-party ownership

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?

Viatical settlement

What is the name of the insured who enters into a viatical settlement?

Viator