19 Flashcards
Owner and insured not same called
Third party ownership
3po
Transfer of all ownership rights in policy
Absolute Assignment
Aa
Ownership provision does not entitle policyowner to
Set premium rates
Set pr
Transfer of all rights of ownership
Permanent and total transfer
New owner no need to have insurable interest
Absolute Assignment
Aa
Partial transfer of rights
Services loan
Temporary Assignment of some rights
Once repaid assigned rights returned to owner
Collateral Assignment
Ca
Using a class designation for beneficiaries means
Naming beneficiaries as group
Used when insured chooses to distribute benefits among living beneficiaries without naming them
Designation by class
Two class designations for When insured chooses to group
Per capital and per stirpes
By the head evenly distri benefits beteen living naked beneficiaries
Aka Per capita
By the bloodline distributes benefits of one who died before the insured
Per stirpes
Advantage of naming contingent beneficiary in life insurance policy
Determines who recs policy of primary beneficiary is deceased
Bryan purchased 90000 policy
Named three sons Quentin Steve and pat For equal shares
Q has two kids bob and Lou
Steve and pat have no kids
Q dies
If Bryan selected per capita designation and only two remain
Steve and pat will Rec 45000 each
Q kids will rec nothing
Bryan purchased 90000 policy
Named three sons Quentin Steve and pat For equal shares
Q has two kids bob and Lou
Steve and pat have no kids
Q dies
If Bryan selected per stirpes designation
Steve and pat rec 30000 each
Q sons rec 15000 each
Man purchases policy naming wife as beneficiary and daughter as contingent
When would daughter be collector
If primary beneficiary predeceased insured
Sole beneficiary dies before insurd
Policyowner fails to change beneficiary before insureds death
Proceeds go
Insureds estate
