LI Study Material Flashcards
A rider on a life insurance policy that the premium will be paid if the insured is disabled for a specific period of time is referred to as:
Waiver of Premium
If the primary beneficiary dies before the insured and a contingent beneficiary is also named in the policy, which of the following will occur when the insured dies?
The contingent beneficiary will receive the proceeds.
B is the owner and insured of a Single Premium Universal Life Insurance contract. B wants to name a charitable entity as beneficiary and make the change permanent. Which is the best type of designation to assure B’s wishes.
Irrevocable
Am insured named his wife beneficiary and his son as contingent beneficiary. If the insured and his wife are killed in the same accident the Common Disaster Clause provides for payment to whom?
the insured’s son
Life insurance policy owner has paid $1,200
If an insured’s age is understated by 10 years on a life insurance policy and dies after the contestable period, the insured company will:
Pay the amount that the premium would have purchased at the correct age
An insured owner of a Single Premium Universal Life Insurance contract wants to permanently name a charity as beneficiary. Which of the following is the BEST type of designation to ensure the policyowners request?
Irrevocable
A Customer surrenders a recently issued whole life policy and requests proceeds be made payable to an unrelated third party. This would be a red flag potential violation of the:
Anti-money laundering rules
A contract for insurance is considered aleatory because it is:
contingent upon the occurrence of a particular event
