L/H UNIT 7 CHECKPOINT

Leah owned a life insurance policy, and she decided that she wanted to transfer that policy to her son when he turned age 18. Which of the following assignments did Leah choose? A) conditional assignment B) absolute assignment C) temporary assigment D) collateral assignment

B) absolute assignment

The insurer's promise to pay can be found in which of the following provisions? A) the assignment provision B) the insuring clause provision C) the entire contract provision D) the ownership rights provision

B) the insuring clause provision

Suzanne and her spouse Bill were unable to make a premium payment in January. How long do they have to make a payment until their coverage will lapse? A) up to 30 days B) up to 31 days C) up to 45 days D) up to 60 days

B) up to 31 days

Which of the following is NOT a mode of premium payment? A) quarterly B) weekly C) monthly D) annually

B) weekly

The insured and the primary beneficiary are in a horrible car accident, and both die on the scene. Which f the following solves the problem of "who died first?" assuming that the primary beneficiary died first? A) facility of payment provision B) the spendthrift provision C) the common disaster provision D) the uniform simultaneous death act

D) the uniform simultaneous death act

All of the following statements about endorsements are correct EXCEPT A) changes must be made in writing B) they must be signed by an executive officer of the insurance company C) changes must be agreed to by both the insurer and policyowner D) they can be authorized by an agent or producer

D) they can be authorized by an agent or producer

According to the free look provision, how many days does a policyowner have to return a policy for any reason? A) 10 days B) 15 days C) 30 days D) 45 days

A) 10 days

If an insured commits suicide 3 years after the effective date on his policy, how will his life insurance be paid? A) the full face amount will be paid B) only the premium will be paid back C) there will not be any payment D) half of the face amount will be paid

A) the full face amount will be paid

All of the following statements about an irrevocable beneficiary are true EXCEPT A) an irrevocable beneficiary can only be changed with her written consent B) policyowners can give up their right to change a beneficiary designation C) an irrevocable beneficiary can be changed with written consent from the policyowner D) if an irrevocable beneficiary dies before the insured, the policyowner usually has the right to name a new beneficiary

C) an irrevocable beneficiary can be changed with written consent from the policyowner

Which of following is NOT a common exclusion in life insurance policies? A) war or military B) aviation C) natural disasters D) hazardous hobbies

C) natural disasters

All of the following statements about reinstatement are correct EXCEPT A) the insured will receive the protection of the original policy B) a reinstated policy start a new contestability period C) the premium for the reinstated policy will be more than the original D) a permanent life policy permits reinstatement in nearly all cases

C) the premium for the reinstated policy will be more than the original

Tim filled out an insurance application stating that he was 40 years old when in fact he was 43 years old. According to the misstatement of age provision, how would his insurance policy be adjusted? A) it would be canceled B) it would be adjusted to a higher face amount C) it would not be adjusted D) it would be adjusted to a lower face amount

D) it would be adjusted to a lower face amount

Tina and William have a policy with a death benefit that is distributed equally among all surviving members of their immediate family. Which of the following beneficiary designations did they choose? A) equal shares B) by the branch C) per stripes D) per capita

D) per capita

Consideration is a legal term meaning A) changes made to a contract B) transfer of rights C) the policy is the entire contract D) something of value

D) something of value

When denying or paying a claim, which of the following is what the insurer will look at when making her decision? A) the policy assignment B) the insuring agreement C) the ownership rights D) the entire contract

D) the entire contract

Which of the following provisions states that after a life insurance policy has been in effect for 2 years, the company cannot claim that a statement made in the application was meant to defraud the insurer? A) the contestability provision B) the reinstatement provision C) the assignment provision D) the incontestability provision

D) the incontestability provision

All of the following are parties to a trust EXCEPT A) the trustee B) the grantor C) the beneficiary D) the insurer

D) the insurer