DeanBeaver3042
Questions 23-29 are true and false statements. In order for a…
Questions 23-29 are true and false statements.
In order for a statement to be true, all parts of the statement must be true and if any part of the statement is false, the answer is false.
23) A life insurance policy is a “chose in possession”.
24) A debtor who assigns a life contract to a bank as loan security transfers certain rights held under the policy including the right to change the policy beneficiary.
25) Community property includes any property acquired by spouses during their marriage but excludes property acquired through gift, will or inheritance.
26) Insurance policies applied for and issued before a marriage are considered separate property under the law of community property.
27) If a beneficiary kills an insured in self-defense, it may still be possible for the beneficiary to collect the proceeds from the policy.
28) A policyowner of a life contract must have an identifiable insurable interest in the life of an insured otherwise the policy may not be valid.
29) An irrevocable beneficiary has a vested right in a life insurance contract.
30) Under the terms of a settlement agreement, a Contingent Payee
A) is the same as the primary payee.
B) always receives nothing if the primary payee outlives the insured.
C) collects any unpaid income amounts still due after the primary payee dies.
D) has the identical rights of a contingent beneficiary in a life insurance contract.
31) A state law known as the Simultaneous Death Act says that when an insured and his beneficiary die at the same time as a result of the same incident
A) it is assumed the beneficiary outlived the insured
B) a life insurance contract is rendered invalid
C) it is assumed the insured outlived the beneficiary
D) the rights of the beneficiary are completely ‘protected.
32) When a first premium is paid on a policy at the time of application, renewal premiums will be due
A) periodically from the exact date of the application
B) on the anniversary of policy delivery
C) according to the policy effective date
D) and payable to the insurance agent
33) What happens if an applicant writes a personal check as payment for initial premium and that check is subsequently dishonored?
A) The policy can be lapsed and the company can sue to collect on the check.
B) The policy proceeds are still automatically payable if the insured dies and the premium is simply deducted from the death benefit.
C) Under no circumstances will the company be liable to pay the death benefit.
D) The insurance agent will be responsible to pay the premium to the insurance company.
34) Which of the following statements about the nonforfeiture option is correct?
A) If the policyholder does not make a selection, the company automatically issues a reduced paid up policy.
B) When a policyowner submits paperwork for a cash surrender and subsequently dies, the company is only bound to pay the surrender value even if it had not yet processed the cash surrender.
C) Under extended term insurance the death benefit is a reduced face amount payable based on a cash value to age ratio
. D) The consent of an irrevocable beneficiary is unnecessary if the policyholder wishes to surrender the policy.
35) For policy loan purposes, the cash value in a life insurance contract owned by
A) the insurance company
B) the policyowner
C) the irrevocable beneficiary
D) the revocable beneficiary
36) When a life insurance contract must be interpreted in a court of equity, the possible remedy includes all of the following EXCEPT:
A) Rescission
B) Interpleader suit
C) Binding arbitration
D) Reformation
37) Under the terms of the incontestability clause of a life insurance contract, a contract can be contested and voided when
A) a material misrepresentation is uncovered at any time in the future.
B) a person other than the insured takes a medical exam, so long as this fact is uncovered in the first two years from the policy issue date.
C) it is discovered at any time in the future that someone other than the insured took the medical exam.
D) an undisclosed health problem is discovered four years after the policy was issued.
