New York Life Insurance 2

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  • 1/97 Questions

    An applicant for life insurance misstated her age on the policy application. How will this affect the death benefit?

    • The payout will take approximately 2 years after the death of the applicant
    • The death benefit will be adjusted to the amount that the insured could obtain for her correct age
    • It will immediately reduce the death benefit with a penalty of about 10%
    • The death benefit will be paid with out being affected
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About This Quiz

The 'New York Life Insurance 2' quiz assesses knowledge on life insurance policies, group insurance eligibility, policy components, and annuity benefits. It is tailored for individuals in finance and insurance, enhancing understanding of complex insurance products and regulations.

New York Life Insurance 2 - Quiz

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  • 2. 

    Settlement options is the term used to describe methods of payment of the death benefit to the beneficiary upon the insured's death.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that settlement options refer to the various ways in which the death benefit is paid to the beneficiary after the insured person passes away. These options may include lump sum payments, annuities, or installments over a period of time. Therefore, it is true that settlement options are the methods of payment for the death benefit.

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  • 3. 

    Revocable is a type of beneficiary that can be changed at any point by the policyowner?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because a revocable beneficiary is one that can be changed or revoked by the policyowner at any time without the need for the beneficiary's consent. This type of beneficiary designation provides flexibility to the policyowner in case their circumstances or preferences change over time.

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  • 4. 

    The income tax benefits of a qualified plan are employer contributions are tax deductible and are not taxed as income to the employee. The earnings accumulate tax deferred.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because qualified plans, such as 401(k) plans, offer income tax benefits. Employer contributions to these plans are tax deductible, meaning the employer can deduct the contribution amount from their taxable income. Additionally, these contributions are not taxed as income to the employee. Furthermore, the earnings on the contributions accumulate tax deferred, meaning they are not subject to income tax until they are withdrawn from the plan. These tax benefits make qualified plans an attractive option for both employers and employees.

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  • 5. 

    Immediate and deferred are the 2 classifications of annuities according to the time when annuity payments begins.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because immediate and deferred are indeed the two classifications of annuities based on when the annuity payments begin. Immediate annuities start paying out immediately after the initial investment, while deferred annuities have a waiting period before payments begin.

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  • 6. 

    A buy-sell agreement is a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. This is also referred to as a 

    • Employee management agreement

    • Business continuation agreement

    • 2nd tier agreement

    • 1 tier agreement

    Correct Answer
    A. Business continuation agreement
    Explanation
    A buy-sell agreement, also known as a business continuation agreement, is a legal contract that outlines the course of action to be taken regarding a business in the event of an owner's death or disability. It specifies the terms and conditions under which the business will be continued or sold, ensuring a smooth transition and providing financial security for the owner's family or business partners. This agreement helps to protect the interests of all parties involved and ensures the continuity of the business operations.

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  • 7. 

    An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy’s cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

    • Term life

    • Universal life

    • Controlled

    Correct Answer
    A. Universal life
    Explanation
    The insured most likely has a universal life insurance policy. Universal life insurance policies have a cash value component that allows the insured to withdraw funds from the policy to pay for various expenses, such as medical bills. However, there is usually a limit on the amount that can be withdrawn and a fee charged by the insurer for the withdrawal. This aligns with the scenario described in the question.

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  • 8. 

    The policy summary must be provided when the policy is delivered.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The policy summary must be provided when the policy is delivered in order to ensure that the policyholder has all the necessary information about their insurance policy. This summary includes important details such as coverage limits, premiums, and any exclusions or limitations. By providing the policy summary at the time of delivery, the insurance company ensures transparency and allows the policyholder to review and understand the terms and conditions of their policy.

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  • 9. 

    An insured modifies his insurance claims, illegally adjusting them to display a lower amount. What insurance concept does this violate?

    • Competent parties

    • Reasonable expectations

    • Utmost good faith

    Correct Answer
    A. Utmost good faith
    Explanation
    When an insured modifies their insurance claims to display a lower amount, they are not acting in utmost good faith. Utmost good faith is a principle in insurance that requires both the insured and the insurer to disclose all relevant information honestly and accurately. By illegally adjusting the claims to display a lower amount, the insured is not being honest and is violating this principle.

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  • 10. 

    The term 'double indemnity means' that the insurer will pay a benefit of twice the face amount?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The term "double indemnity" refers to an insurance policy provision where the insurer agrees to pay a benefit that is twice the face amount in certain circumstances. This provision typically applies when the insured's death is caused by a specific event, such as an accident or a violent crime. Therefore, the statement that the insurer will pay a benefit of twice the face amount is true.

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  • 11. 

    The annuity underlying investment is what causes a variable annuity benefit to vary.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because the annuity underlying investment is the main factor that determines the variability of a variable annuity benefit. The performance of the underlying investment, such as stocks or bonds, directly impacts the value of the annuity and therefore affects the amount of benefit that the annuity holder will receive. If the underlying investment performs well, the benefit may increase, but if it performs poorly, the benefit may decrease. Therefore, the variability of the annuity benefit is directly linked to the performance of the underlying investment.

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  • 12. 

    Which of the following is true regarding the insurance amount in a credit life policy?

    • Creditor may insure the debtor for an unlimited amount of coverage.

    • Allowable amount of coverage is determined by the State Insurance Commissioner.

    • Creditor can only insure the debtor for the amount owed.

    Correct Answer
    A. Creditor can only insure the debtor for the amount owed.
    Explanation
    The correct answer is "Creditor can only insure the debtor for the amount owed." This means that in a credit life policy, the creditor is only allowed to insure the debtor for the specific amount of debt that is owed. The insurance coverage cannot exceed the amount of the debt.

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  • 13. 

    The policy loan option is found only in policies that contain cash value.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The policy loan option allows policyholders to borrow money from their life insurance policies. This option is only available in policies that have accumulated cash value over time. Cash value is the amount of money that has been paid into the policy and has grown through investment returns. Therefore, the statement is true because policy loans are only offered in policies that have cash value.

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  • 14. 

    Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

    • The Consideration Clause

    • Ownership rights

    • The Entire Contract Provision

    Correct Answer
    A. Ownership rights
    Explanation
    Ownership rights explain the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy. As the owner of the policy, they have the authority to make these decisions and have control over the policy. The ownership rights allow the policyowner to modify the policy as needed, such as changing beneficiaries or selecting different options, and also receive the benefits or proceeds of the policy when the time comes.

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  • 15. 

    The difference between a single premium and a flexible premium payment options in a deferred annuity is the number of payments that purchase the annuity.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A deferred annuity is a type of annuity where the payments are made in advance and the annuity starts at a later date. The difference between a single premium and a flexible premium payment option in a deferred annuity is the number of payments made to purchase the annuity. In a single premium payment option, the annuity is purchased with a lump sum payment. On the other hand, in a flexible premium payment option, the annuity is purchased with multiple payments over a period of time. Therefore, the statement "The difference between a single premium and a flexible premium payment options in a deferred annuity is the number of payments that purchase the annuity" is true.

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  • 16. 

    The buyer's guide must be provided prior or at the time of application.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The buyer's guide must be provided prior or at the time of application to ensure that the buyer is fully informed about the product or service they are applying for. By providing the guide beforehand, the buyer has the opportunity to review all relevant information and make an informed decision. This helps to promote transparency and protect the buyer's rights.

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  • 17. 

    Statements on the application made by an applicant for a life insurance policy are known as what?

    • Application consideration

    • Material facts

    • Guaranteed knowledge

    • Representations

    Correct Answer
    A. Representations
    Explanation
    The statements made by an applicant for a life insurance policy are known as representations. Representations are the information provided by the applicant to the insurance company, which are considered to be true and accurate to the best of their knowledge. These statements play a crucial role in the underwriting process as they help the insurer assess the risk involved in insuring the applicant. If any misrepresentation or omission is discovered later, it may result in the denial of a claim or even cancellation of the policy.

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  • 18. 

    Under and extended term nonforfeiture option, the cash value is converted to the same face amount as in the whole life policy.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Under an extended term nonforfeiture option, the cash value of a policy is used to convert it into a term insurance policy with the same face amount as the original whole life policy. This means that the policyholder can continue to have coverage, but without paying any further premiums. This option is beneficial for policyholders who can no longer afford to pay premiums but still want to maintain some level of coverage. Therefore, the statement "the cash value is converted to the same face amount as in the whole life policy" is true.

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  • 19. 

    According to the taxation rules of life insurance policies, cash value increases or growth are tax deferred.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Cash value increases or growth in life insurance policies are tax deferred, meaning that policyholders do not have to pay taxes on the growth until they withdraw the funds. This allows the cash value to accumulate and grow over time without being subject to immediate taxation.

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  • 20. 

    Which of the following will be included in a policy summary?

    • Comparisons with similar policies

    • Primary and secondary beneficiary designations

    • Premium amounts and surrender values

    Correct Answer
    A. Premium amounts and surrender values
    Explanation
    A policy summary is a document that provides an overview of an insurance policy. It typically includes important information such as premium amounts and surrender values. Premium amounts refer to the amount of money that the policyholder needs to pay for the insurance coverage, while surrender values indicate the amount of money that the policyholder will receive if they decide to terminate or surrender the policy before its maturity. These details are crucial for individuals to understand the financial aspects of the policy and make informed decisions regarding their insurance coverage.

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  • 21. 

    An applicant conceals relevant health information on the application. The applicant presents what type of hazard?

    • Speculative

    • Moral

    • Pure

    • Spiritual

    Correct Answer
    A. Moral
    Explanation
    The applicant concealing relevant health information on the application presents a moral hazard. This is because the act of intentionally hiding important health information is considered dishonest and unethical. It demonstrates a lack of moral integrity and raises concerns about the applicant's trustworthiness and potential risks they may pose to others.

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  • 22. 

    What happens to a policy's cash value under an extended term nonforfeiture option?

    • The cash value interest rises and taxed by 30%

    • The face value is converted to the same face amount as in the whole life

    • Nothing happens

    • The term policy starts over

    Correct Answer
    A. The face value is converted to the same face amount as in the whole life
    Explanation
    Under an extended term nonforfeiture option, the cash value of a policy is not affected. Instead, the face value of the policy is converted to the same face amount as in the whole life. This means that the policy will continue, but without any cash value accumulation.

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  • 23. 

    If the annuitant dies before the annuitization period starts, the beneficiary will receive either the amount paid into the annuity or the cash value, whichever is greater.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    If the annuitant dies before the annuitization period starts, the beneficiary will receive either the amount paid into the annuity or the cash value, whichever is greater. This means that if the annuitant has made significant contributions to the annuity, the beneficiary will receive a larger payout. This is true because the purpose of an annuity is to provide income or financial support to the annuitant or their beneficiary, and in the event of the annuitant's death, the beneficiary should receive the maximum benefit possible.

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  • 24. 

    The Superintendent may refuse to issue a license in all of the following situations EXCEPT

    • The proposed licensee is not trustworthy

    • The proposed licensee is not competent.

    • The proposed licensee is from another state

    Correct Answer
    A. The proposed licensee is from another state
    Explanation
    The Superintendent may refuse to issue a license in all of the situations mentioned except when the proposed licensee is from another state. This means that if the proposed licensee is from another state, the Superintendent cannot refuse to issue a license solely based on that reason. However, if the proposed licensee is not trustworthy or not competent, the Superintendent has the authority to refuse to issue a license.

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  • 25. 

    Why is an equity indexed annuity considered to be a fixed annuity?

    • It is not tied to an index like the S&P 500

    • It has a guaranteed minimum interest rate

    • It has modest investment potential

    Correct Answer
    A. It has a guaranteed minimum interest rate
    Explanation
    An equity indexed annuity is considered to be a fixed annuity because it offers a guaranteed minimum interest rate. Unlike variable annuities, which are tied to an index like the S&P 500 and offer higher potential returns, equity indexed annuities provide a more conservative investment option with a guaranteed minimum return. This makes them more similar to traditional fixed annuities, which also offer a guaranteed interest rate. While equity indexed annuities may have some investment potential, it is generally considered to be more modest compared to variable annuities.

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  • 26. 

    Which of the following statements is an accurate comparison between private and government insurers?

    • Private insurers may be authorized to transact insurance by state insurance departments.

    • Insurance provided by the government is called "federal insurance."

    Correct Answer
    A. Private insurers may be authorized to transact insurance by state insurance departments.
    Explanation
    Private insurers may be authorized to transact insurance by state insurance departments, whereas insurance provided by the government is not necessarily called "federal insurance." This statement highlights the key difference between private and government insurers in terms of their authorization and regulation. While private insurers need to obtain authorization from state insurance departments, government insurers may operate under different names and may not necessarily be referred to as "federal insurance."

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  • 27. 

    If an agent fails to obtain the applicant's signature on the insurance application, what must the insurer do?

    • Send the application back to the applicant for signature

    • Ask the producer to sign for the applicant

    • Deliver the completed part of the policy until the other part is signed

    • Void the application

    Correct Answer
    A. Send the application back to the applicant for signature
    Explanation
    If an agent fails to obtain the applicant's signature on the insurance application, the insurer must send the application back to the applicant for signature. This is necessary because the applicant's signature is required to validate and authorize the application. Without the applicant's signature, the application is incomplete and cannot proceed further in the insurance process. Therefore, the insurer must return the application to the applicant to ensure that it is properly signed before moving forward.

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  • 28. 

    What does liquidity mean in a life insurance policy?

    • Extra cash after premium

    • The ability to buy and sell

    • Availability of cash value

    • Changing of policy to whole life

    Correct Answer
    A. Availability of cash value
    Explanation
    Liquidity in a life insurance policy refers to the availability of cash value. This means that policyholders have the option to access the cash value of their policy if needed, either through withdrawals or loans. This provides flexibility and financial security, as policyholders can use the cash value for various purposes, such as emergencies, education expenses, or retirement planning. It allows policyholders to have a readily accessible source of funds, providing them with liquidity in times of financial need.

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  • 29. 

    What life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?

    • 401k

    • Disabled rider

    • Waiver of premium

    • Post premium option A rider

    Correct Answer
    A. Waiver of premium
    Explanation
    The correct answer is "Waiver of premium." This life policy rider allows the company to waive the collection of premium if the insured becomes disabled. This means that the insured does not have to pay the premium during the period of disability, ensuring that the policy remains in force even if the insured is unable to make payments.

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  • 30. 

    Insurance is used to transfer what to the insurance company?

    • Peril

    • Debt

    • Financial responsibility for loss

    • Premium

    Correct Answer
    A. Financial responsibility for loss
    Explanation
    Insurance is used to transfer financial responsibility for loss to the insurance company. When individuals or businesses purchase insurance, they are essentially transferring the risk of potential financial losses to the insurance company. In case of an event that causes a loss, the insurance company will bear the financial responsibility for covering the damages or losses incurred by the insured party. This allows the insured party to have peace of mind knowing that they will be protected financially in the event of an unforeseen loss or damage.

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  • 31. 

    What provision in a life insurance policy extends coverage beyond the premium due date?

    • Automatic premium loan

    • Grace period

    • Extended term

    • Universal rider

    Correct Answer
    A. Grace period
    Explanation
    A grace period is a provision in a life insurance policy that allows the policyholder to make a premium payment after the due date without any penalty. During this period, which is usually 30 days, the coverage remains in force, ensuring that the policyholder is still protected even if they miss the premium payment deadline. The grace period provides a buffer for policyholders who may face temporary financial difficulties or forgetfulness, allowing them to maintain their coverage without interruption.

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  • 32. 

    Upon surrender of a life insurance policy, only the cash value portion in excess of the premium paid will be taxed.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When a life insurance policy is surrendered, the policyholder receives the cash value of the policy. This cash value is the amount that has accumulated over time due to premiums paid and investment returns. The cash value portion in excess of the premium paid is subject to taxation. This means that if the cash value is higher than the total premiums paid, only the excess amount will be taxed. Therefore, the statement is true.

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  • 33. 

    A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?p

    • The group has not been established for long enough.

    • The purpose of the group was to purchase life insurance

    • Their profession poses too high of a risk for the insurer.

    Correct Answer
    A. The purpose of the group was to purchase life insurance
    Explanation
    The reason they were rejected for group life insurance could be that the insurance company does not offer group life insurance to individuals who specifically form a group solely for the purpose of purchasing life insurance. The insurance company may have policies in place that require groups to have a common bond or purpose other than just buying insurance.

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  • 34. 

    What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

    • Military service or war

    • Hazardous occupation

    • Limited

    Correct Answer
    A. Military service or war
    Explanation
    The correct answer is "Military service or war." This refers to a clause in an insurance policy that restricts or eliminates the death benefit if the insured person dies due to war or while serving in the military. This clause is included to mitigate the risks associated with these specific circumstances, as they are considered high-risk situations.

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  • 35. 

    An insurance broker's license may be issued to

    • Anyone who can pass the written examination.

    • A person, firm or corporation.

    • Persons age 17 or older.

    Correct Answer
    A. A person, firm or corporation.
    Explanation
    An insurance broker's license may be issued to a person, firm, or corporation. This means that not only individuals, but also businesses and organizations can obtain an insurance broker's license. This allows for a wider range of entities to engage in insurance brokerage activities, providing more options and flexibility in the industry.

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  • 36. 

    Which of the following will be included in a policy summary?

    • Comparisons with similar policies

    • Primary and secondary beneficiary designations

    • Premium amounts and surrender values

    Correct Answer
    A. Premium amounts and surrender values
    Explanation
    A policy summary typically includes important information about an insurance policy, such as premium amounts and surrender values. Premium amounts refer to the amount of money that the policyholder needs to pay regularly to keep the policy in force. Surrender values, on the other hand, represent the amount of money that the policyholder will receive if they decide to surrender or cancel the policy before its maturity date. Including these details in a policy summary helps individuals understand the financial aspects of the policy and make informed decisions.

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  • 37. 

    Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

    • $50,000

    • Nothing

    • $62,500

    Correct Answer
    A. $50,000
    Explanation
    The annuitant's spouse will receive $50,000 in benefits. This is because the annuitant had received $12,500 in monthly benefits from the straight life annuity, but this annuity does not have a death benefit. However, the annuitant also had a $50,000 paid-up whole life policy with his wife as the primary beneficiary. Therefore, the spouse will receive the death benefit of $50,000 from the whole life policy.

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  • 38. 

    The insured would be considered a third-party owner.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Any individual or entity who is not the ensured would be considered a third-party owner

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  • 39. 

    Once a life insurance policy has been issued, the insurer must pay the policy benefit, whether or not an insurable interest exists.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Once a life insurance policy has been issued, the insurer is legally obligated to pay the policy benefit to the designated beneficiary, regardless of whether or not an insurable interest exists. This means that even if the policyholder does not have a financial or personal relationship with the insured person, the insurer is still required to fulfill their obligation and pay the benefit upon the insured person's death.

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  • 40. 

    For a retirement plan to be qualified it must be designed for the benefit of the employer.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    designed for the benefit of the employees

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  • 41. 

    In flexible premium payment annuities, the term flexible refers to what?

    • Change in annuitant

    • Annuity can be changed at any given time

    • Amount of premium

    • Flexible face amount

    Correct Answer
    A. Amount of premium
    Explanation
    In flexible premium payment annuities, the term "flexible" refers to the ability to adjust the amount of premium paid. This means that the policyholder can choose to increase or decrease the amount of money they contribute towards their annuity at any given time. This flexibility allows individuals to have more control over their financial planning and adjust their premium payments based on their changing financial circumstances.

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  • 42. 

    What provides basic information about life insurance policies?

    • Application agreement

    • Summary

    • Buyer's guide

    • Financial statment

    Correct Answer
    A. Buyer's guide
    Explanation
    The buyer's guide provides basic information about life insurance policies. It is a document that explains the different types of policies available, their features, benefits, and costs. The buyer's guide helps individuals make informed decisions about purchasing life insurance by providing them with essential information about the policy they are considering. It is designed to educate potential buyers about the policy's terms and conditions, coverage options, and any potential limitations or exclusions. Overall, the buyer's guide serves as a valuable resource for individuals looking to understand life insurance policies better.

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  • 43. 

    In order to be a licensed life settlement broker, a person must complete which of the following requirements?

    • Have been a licensed life producer for at least one year

    • Submit fingerprints

    • Submit to a drug test

    Correct Answer
    A. Submit fingerprints
    Explanation
    To become a licensed life settlement broker, one must submit their fingerprints. This requirement is likely in place to ensure that the individual's identity and background can be verified, ensuring that they are qualified and trustworthy to engage in the business of life settlements. By submitting fingerprints, authorities can conduct a thorough background check, including criminal records, to ensure the safety and protection of consumers in the life settlement industry.

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  • 44. 

    Which is true about a spouse term rider?

    • The rider is decreasing term insurance.

    • Coverage is allowed for an unlimited time.

    • The rider is level term insurance.

    Correct Answer
    A. The rider is level term insurance.
    Explanation
    A spouse term rider is a type of insurance policy that provides coverage for the spouse of the main policyholder. In this case, the correct answer is that the rider is level term insurance. This means that the coverage amount remains the same throughout the duration of the policy. Unlike decreasing term insurance, where the coverage amount decreases over time, and unlimited time coverage, which is not mentioned as an option, a level term insurance rider provides a consistent level of coverage for the spouse.

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  • 45. 

    Based on Human Life Value Approach, which of the following is NOT used to calculate an individual’s life value?

    • Predicted needs of the family after the insured's death.

    • Insured's current and future income.

    • Insured's annual expenses.

    Correct Answer
    A. Predicted needs of the family after the insured's death.
    Explanation
    The predicted needs of the family after the insured's death are not used to calculate an individual's life value according to the Human Life Value Approach. This approach focuses on factors such as the insured's current and future income and their annual expenses to determine their life value. The predicted needs of the family after the insured's death may be considered in other calculations such as determining the amount of life insurance coverage needed, but it is not directly used in calculating the individual's life value.

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  • 46. 

    The disadvantage of selecting the life income settlement option is if the beneficiary dies shortly after the payments begin, the balance of the principal will be forfeited.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because if the beneficiary dies shortly after the payments begin, the remaining balance of the principal will be forfeited. This means that the beneficiary's estate or any other designated individuals will not receive any remaining funds. Therefore, selecting the life income settlement option can be disadvantageous in such cases where the beneficiary's life expectancy is short.

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  • 47. 

    The policy owner of a life insurance policy has the right to transfer partial or complete ownership of the policy to another person without the consent of the insurer.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the correct answer is that the policy owner of a life insurance policy does indeed have the right to transfer partial or complete ownership of the policy to another person without the consent of the insurer. This means that the policy owner can choose to transfer ownership of the policy to someone else, either partially or entirely, without needing permission from the insurance company. This allows the policy owner to transfer the benefits and responsibilities of the policy to another individual if they wish to do so.

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  • 48. 

    Two types of policy assignment are

    • Collateral

    • Premium

    • Life

    • Absolute

    Correct Answer(s)
    A. Collateral
    A. Absolute
    Explanation
    The given correct answer includes two types of policy assignments: collateral and absolute. Collateral policy assignment refers to the transfer of a policy to a lender as collateral for a loan. This means that if the policyholder fails to repay the loan, the lender can claim the policy's proceeds. On the other hand, absolute policy assignment involves the complete transfer of ownership rights to another party. In this case, the policyholder no longer has any control or rights over the policy.

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  • 49. 

    The 3 types of social security benefits are

    • Beneficiary

    • Disability

    • Retirement

    • Survivors

    Correct Answer(s)
    A. Disability
    A. Retirement
    A. Survivors
    Explanation
    The correct answer is Disability, Retirement, and Survivors. These three types of social security benefits are provided to different groups of people. Disability benefits are given to individuals who are unable to work due to a disability. Retirement benefits are provided to individuals who have reached a certain age and have paid into the social security system. Survivors benefits are given to the family members of a deceased individual who was eligible for social security benefits. These benefits aim to provide financial support and security to individuals and their families in different life circumstances.

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  • Mar 07, 2013
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    Gregpeck

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