a 41 year old lawyer who wants a policy to pay his mortgage if he dies quizlet

by Mathias Schmidt V 10 min read

The correct answer is: His beneficiary will receive the full death benefit. A decreasing term life policy would be the most appropriate for a 41 year old lawyer who wants a policy to pay his mortgage if he dies. Decreasing Term: Policies that provide a face amount that decreases to zero over the policy period.

Which policy pays the death benefits after the first person dies?

Joint life pays the death benefits after the first person dies. A survivorship life policy pays after the second person or last survivor dies. Which of the following policies requires a beneficiary designation? a. AD&D b. Blanket policy d. Medicare The AD&D is the only health policy listed that requires a beneficiary be named. a. Taxable b.

What does the insurer do if an applicant misstates their age?

Renewability is the insurer's option. If an applicant misstates their age on an insurance application, what does the insurer do when it is discovered at claim time? a. Pay the claim in full because it is no longer contestable. b. Cancel the policy.

How long must the insured wait before taking legal action?

d. Straight whole life b. 20 - pay life An insured filed a claim with her insurance company and submitted all the proof of loss requested. The insurer is non-responsive. How many days must the insured wait before beginning legal action to recover her money? 60 days

When must an insurable interest be shown?

Insurable interest must be shown when an individual applies for a life or health insurance policy. The correct answer is: When the application is requested. a. The consideration clause. b.

Is interest paid on an insurance policy taxable?

Funds exceeding the premium paid are taxable as ordinary income. All of the following are TRUE statements regarding the accumulation at interest option EXCEPT. The interest is not taxable since it remains inside the insurance policy.

Is the interest credited under this option taxable?

The interest credited under this option is TAXABLE, whether or not the policy owner receives it. An insurer that does not pay a death benefit in a timely manner as required by state law, will be required to. Pay to the beneficiary an interest penalty from the date of the insured's death.

Who is allowed to assign a policy to a family member?

a. Insured is allowed to assign the policy to a family member.

What is the role of insurance agents in replacing existing life insurance and annuities?

The activities of insurance agents in replacing existing life insurance and annuities is regulated to protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct. The correct answer is: Establishing minimum standards of conduct.

Why do you have to pay a claim in full?

a. Pay the claim in full because it is no longer contestable.

What does Adjust the Claim Benefits reflect?

Adjust the claim benefits to reflect what he would have been entitled to if his real age had been given.

When did Rick sell his Medicare policy?

Provide coverage for medical expenses not covered by Medicare. Rick sold a Major Medical policy and collected the initial premium on May 5th. He received the approved policy back from the insurer on May 9th and tried to deliver it on May 15, but the client was not at home. He did deliver the policy on May 30th.

What is Greg's disability?

Greg, a teacher, has a disability income policy with the change of occupation provision. Greg quits his and becomes an oilfield worker.

Does Brenda's insurance go after a third party?

Brenda's has given her insurer permission to go after a third party to collect damages owed. This is known as:

Can mutual funds issue life insurance?

b. Stock insurers can only issue life insurance; mutual insurers can issue both life and health insurance.

Can mutual insurers operate in more than one state?

d. Stock insurers can operate in more than one state; mutual insurers can only operate in one state.