Chapter 4- Life Premiums

Which statement is true regarding a minor beneficiary?

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

A policy owner is allowed to pay premiums more than once a year under which provision?

Mode of Premium

A policy owner is able to choose the frequency of premium payments through what policy feature?

Premium Mode

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

Daughter

Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policy owner?

Irrevocable beneficiary

Which of these is NOT an element of Life Insurance premiums?

Morbidity Rate

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 does before the insured

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

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

The cost

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 policy owner's rights are limited under which beneficiary designation?

Irrevocable

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 only

The common disaster clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true?

This clause provides the payment of proceeds to the insured's estate