The primary beneficiary is Walter and Alexander is the contingent beneficiary.
There are different kinds of beneficiaries in a life policy. When Alice dies, the death benefit will be paid to Walter. If Walter dies before Alice, the benefit would go to Alexander. Which of the following statements is true?
Alice is the policyholder an
Requires the primary beneficiary to outlive the insured by a certain number of days in order to receive the death benefit in a common disaster between the insured and the primary beneficiary
The Common Disaster Clause:??
If the primary beneficiary does not outlive the insured by the number of days specified in the policy's common disaster clause, then the insured's estate receives the death benefit.
Policy proceeds are paid as if the primary beneficiary died first.
The insured and the primary beneficiary are killed in a car accident. Which of the following is true according to the Uniform Simultaneous Death Act?
The Uniform Simultaneous Death Act states that if the insured and the primary beneficiary are in a common
Revocable beneficiary
Which beneficiary designation is most appropriate for a person who wants to name his spouse as a beneficiary of his life insurance policy, and simultaneously retain full policy ownership rights?
By naming a beneficiary as irrevocable, that person effectiv
Philip's children from his prior marriage
Mary and Philip are married. Philip named Mary as the primary beneficiary of his life insurance policy. His children from a prior marriage are contingent beneficiaries. Under the Uniform Simultaneous Death Act, who will receive the death benefit if Mary a
The benefits can go directly to the estate of the insured.
All of the following options are available if the only logical beneficiary is a minor, EXCEPT:
The guardian, trust and insurance company holding the proceeds are all options if a minor is a beneficiary.
Spendthrift clause
Which of the following prevents creditors from seizing life insurance policy proceeds as long as there is at least one living named beneficiary, excluding the insured's estate?
The spendthrift clause is used to prevent creditors from seizing life insuranc
Beneficiaries
Who are the named individuals or entities the policyowner designates to receive life insurance policy proceeds upon the insured's death?
Beneficiaries are the named individuals or entities designated by the policyowner to receive the policy proceeds upon
Class designation
Which of the following is a beneficiary designation based on a group of people with shared characteristics?
The class designation allows all members of a group with a set of common traits to be beneficiaries of a life insurance policy.
Policy owners can borrow from cash value without consent.
If an irrevocable beneficiary is named on a life insurance policy, all of the following statements are true, EXCEPT:
The policy owner must have the consent of the irrevocable beneficiary to borrow from the cash value.
...
Abigail and Bob have a joint life insurance policy. They name their three children, Simon, Stacey, and Terry as beneficiaries: Simon is primary, Stacey is secondary, and Terry is tertiary. If Abigail and Bob die in a car accident, who will receive the pol
Contingent beneficiary
If the primary beneficiary predeceases the insured, the policy proceeds are paid to the ________________ upon the death of the insured.
The contingent beneficiary receives the proceeds if the primary beneficiary dies before the insured.
Raquel's children from her prior marriage
Abel and Raquel are married. Raquel owns a life insurance policy, naming her husband Abel as the primary beneficiary and her children from a prior marriage as contingent beneficiaries. According to the Uniform Simultaneous Death Act, who receives the deat
The policyowner cannot change the beneficiary without their knowledge.
Which of the following statements is not true about a revocable beneficiary on a life insurance policy?
In the case of a revocable beneficiary, the policyowner can change the beneficiary with or without their knowledge and consent.
Roberta should name Marvin as a revocable beneficiary.
Roberta wants to buy a life insurance policy, naming her son Marvin as beneficiary, but she wants to keep all ownership rights under the policy. How should Roberta name Marvin as beneficiary?
Revocable beneficiaries do not have any rights of ownership, wh
Trust
Which of the following types of life insurance beneficiary designations should be used to establish a scholarship fund?
A trust can be named as the beneficiary. In this scenario, the policyowner (grantor) gives the legal title of the insurance policy to a
a. Litigation
b. Confusion
c. Conflicts
Question text
It is important to specify beneficiary designations very carefully. Taking care when the policy is written will avoid problems later, such as:
Taking care when specifying beneficiary designations will help to minimize the potential for confl
The beneficiary does not need to have an insurable interest in the life of the insured.
All of the following statements are false regarding the beneficiary designation of a life insurance policy, EXCEPT:
The beneficiary may be a person or a legal entity. One or more beneficiaries may be named. As part of ownership rights, the policyowner nam
...
A life insurance policy is a contract between the insurer and the policyowner. After the insured has died, the contractual arrangement is between the insurer and the beneficiary. What responsibilities does the insurer have to the insured's creditors?
a. T
Only one beneficiary may be named.
All of the following statements are true of beneficiary designations in a life insurance policy, EXCEPT:
More than one beneficiary may be named in a life insurance policy.
...
Which of the following is a drawback in naming a trust as a beneficiary of a life insurance policy?
Select one:
a. High costs of administering a trust
b. Policy proceeds must go through probate court
c. A trust cannot legally receive policy proceeds
d. As
...
Which of the following is NOT a life insurance beneficiary designation option?
Select one:
a. An individual
b. A class of beneficiaries
c. Minors
d. None of the above
LH73003
Feedback
Your answer is incorrect
Life insurance beneficiary designation options
Designating him/her as a beneficiary in the policyholder's will
As long as a beneficiary is named as revocable, the policyowner may change a beneficiary at any time. Which of the following is not a way to change a beneficiary?
To change a beneficiary on a life insurance policy, the policyholder must contact the insure
...
John and Maria have a joint life policy. They name their three children, Margaret, Terry, and Jean, as beneficiaries: Margaret is primary, Terry is secondary, and Jean is tertiary. If John and Maria die in a car accident who will receive the policy procee
...
Mary Williams has been named the tertiary beneficiary on her sister's life policy. What is the role of the tertiary beneficiary?
Select one:
a. The tertiary is the first beneficiary.
b. The tertiary supercedes the secondary beneficiary.
c. The tertiary co
...
Ricardo and Kim were killed simultaneously in a car crash on the freeway. Ricardo was the insured and Kim was the primary beneficiary. How will the policy proceeds most likely be distributed?
Select one:
a. The proceeds go to Ricardo's estate.
b. The proc
...
The _______________ solves the problem of determining who receives the policy proceeds if the insured and the primary beneficiary are killed at the same time due to a common accident.
Select one:
a. Common disaster clause
b. Facility of payment provision
...
Which life insurance beneficiary designation specifically provides assignment rights of the policy proceeds?
Select one:
a. Per stirpes
b. Primary
c. Revocable
d. Irrevocable
LH73027
Feedback
Your answer is incorrect
Irrevocable beneficiaries have the rig
Muriel will receive $100,000, Adam's children each receive $50,000 and Adrian will receive $100,000.
Regina buys a $300,000 life insurance policy naming her children, Adam, Adrian and Muriel, as per stirpes beneficiaries. All of Regina's children are married and have their own children. Adam has two children from a prior marriage, and Adrian has an adopt
15 - 30 days
Stephanie is the primary beneficiary on her sister Janet's life policy. Both sisters are seriously injured in a boating accident and Janet dies. How long must Stephanie survive the accident in order to receive the policy proceeds?
Usually the policy will