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What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary
Tertiary beneficiary
Primary beneficiary
Revocable beneficiary
Irrevocable
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0
Which statement is true regarding a minor beneficiary
Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
The minor must pay the debts of the insured's estate before receiving any of the proceeds
The minor is entitled to receive the death proceeds immediately
What is the underlying concept regarding level premiums?
Level premiums build cash value quicker in the early years
The early years are charged more than what is needed
The early years are charged less than what is needed
Level premiums can only be paid annually
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
Contingent
Primary
Revocable
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?
Tertiary
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be paid to P's estate
Proceeds will be divided equally between K's and P's estate
Proceeds will be paid to K's estate if P dies within a specified time
The courts will decide who will receive death benefits
Which premium schedule results in the lowest cost to the policyowner?
Semi-annual
Monthly
Quarterly
Annual
At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
After the Contestable period
When the policy proceeds are paid
At the time of application
When the insured dies
Any changes made on an insurance application requires the initials of whom?
Insured
Agent
Applicant
Beneficiary
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