How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums?
The early years are charged less than what is needed
When can a policy owner change a revocable beneficiary?
Anytime
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?
Revocable
A policy owner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
,Xcell Testing Solutions (Life & Health)
Any changes made on an insurance application requires the initials of whom?
Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT
Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued
February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
M completes an application for life insurance but does not pay the initial premium. All of these actions
must occur before M's policy goes into effect EXCEPT
free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance?
Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance
, Xcell Testing Solutions (Life & Health)
When an employee is terminated, which statement about a group term life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion period
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Corporation
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What
type of annuity did N purchase?
Fixed Deferred
S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy
an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is
best suited for her situation?
Single Premium
Which of these is an element of a Single Premium annuity?
Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TOPMARKSOLUTIONS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
