unit 7
The incontestability provision is usually in effect after
2 years
Which clause identifies the fact that the policyowner must pay something of value for the insurer's promise to pay benefits?
Consideration clause
Which clause identifies the components of the contract?
Entire contract clause
Ginny is a revocable primary beneficiary on her mother's life insurance policy. Which of the following statements is TRUE?
Ginny will receive benefits before any other beneficiary upon her mother's death
Which clause contains the basic promise of the life insurance company to pay a specified sum of money to a beneficiary upon the death of the insured?
Insuring clause
When Tom dies, Rosemary receives the death benefit. If Rosemary had died before Tom, George would have received the benefit. Which of the following statements is TRUE?
Rosemary is the primary beneficiary, and George is the contingent beneficiary
Steve is the beneficiary on his spouse's life insurance policy. When they divorce, his spouse cannot move him as beneficiary on the policy without his written permission because
Steve is an irrevocable beneficiary
An insured and the primary beneficiary died in a car accident. Which of the following states that the primary beneficiary died first unless there is evidence to the contrary?
The Uniform Simultaneous Death Act
Which of the following is allowed when policy proceeds are being paid through a spendthrift clause?
The proceeds are paid directly to the beneficiary in monthly installments
John leaves his $300,000 estate to his 3 children to split equally according to a per capita distribution. One of his children dies before John does. Upon John's death, which of the following statements is TRUE?
The proceeds are split 2 ways between the remaining children only
John leaves his $300,000 estate to his 3 children to split equally according to a per stirpes distribution. One of his children dies before John does. Upon John's death, which of the following is TRUE?
The proceeds are split 3 ways between the remaining children and the beneficiary of the deceased child's estate
The aviation exclusion eliminates coverage for all of the following EXCEPT
a commercial flight
All of the following are designations of beneficiaries EXCEPT
final beneficiary
If the named beneficiaries cannot be found, under the facility of payment provision the insurer may
select a beneficiary
Carl purchased a life insurance policy when he was 44. The insurer accidentally recorded his age as 42. When the accident is discovered in a review of the files 5 years later
the coverage will be reduced because the premium is lower than it should have been
All of the following can be named beneficiaries in a life insurance contract EXCEPT
the insured