Insurance Practice Exam 150 Questions| 36 PAGES| GRADED A

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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 benefici... ary Correct Answer: *Irrevocable beneficiary (An irrevocable designation may not be changed without the written consent of the beneficiary.) When can a policyowner change a revocable beneficiary? *Anytime *After the consent of the current beneficiary *Never *Only if primary beneficiary dies Correct Answer: *Anytime (With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.) 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 *Irrevocable *Revocable *Contingent Correct Answer: *Revocable (With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.) How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? *If the primary beneficiary is a minor at the time of the insured's death *If the primary beneficiary dies before the insured *If the insured died of accidental causes *If the insured died of natural causes Correct Answer: *If the primary beneficiary dies before the insured (A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's death.) Which statement regarding the Change of Beneficiary provision is true? *The beneficiary can only be changed with the consent of the insurer *The policyowner can change the beneficiary *The insured can change the beneficiary *A beneficiary change is subject to underwriting procedures Correct Answer: *The policyowner can change the beneficiary (A policyowner may change a beneficiary at any time. However, consent may be needed by the current beneficiary if designated as irrevocable.) A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? *Revocable *Contingent *Irrevocable *Primary Correct Answer: *Irrevocable (An irrevocable designation may not be changed without the written consent of the beneficiary.) 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 Correct Answer: *Normally, a guardian is required to be appointed in the Beneficiary clause of the contract (In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.) 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 Correct Answer: *The early years are charged more than what is needed [Show More]

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