Quick Answer: Which Of The Following Would Describe A Legal Document Which Would Dictate?

Which of the following best defines the owner as it pertains to?

Which of the following best defines the “owner” as it pertains to life settlemetn contracts? The policy owner of the insurance policy.

Which of the following is the best reason to purchase life insurance rather than annuities?

Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be to provide for your loved ones if you do not have much saved up. With life insurance, you gain an instant legacy. After that first premium is paid, should you die, your heirs have an instant estate.

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Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?

Which of the following is correct concerning the taxation of a Key Person Life Insurance Policy premiums and death benefit? Premiums are not deductible as a business expense and the death benefit is not taxable to the company. The business cannot take a tax deduction for the expense of the premium.

What are the two components of a universal policy?

Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value. The cost of insurance (COI) is the minimum amount you must pay to keep your policy active. This amount varies based on your age, health, and insured risk amount.

What is the name of the insured who enters into a viatical settlement?

A “viator” is the owner of an individual life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract. The “insured” is the person on whose life an insurance policy is written. Usually, the insured is also the viator.

Which of the following is correct regarding credit life insurance quizlet?

The correct answer is: Endowment contracts endow only upon the insured’s death. Credit life insurance is issued on the life of the person who has the debt (debtor) and the creditor owns and is the beneficiary of the policy. You just studied 14 terms!

What is the main purpose of the seven pay test?

The seven-pay test determines whether the total amount of premiums paid into a life insurance policy, within the first seven years, is more than what was required to have the policy considered paid up in seven years.

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Which of the following applies to the 10 day free look privilege?

which of the following applies to the 10-day free-look privilege? it permits the insured to return the policy for a full refund of premiums paid.

Which of the following best describes the MIB?

Which of the following best describes the MIB? The MIB is a nonprofit association that collects information about individuals’ medical conditions and insurability.

What is another name for substandard risk classification?

Another name for a substandard risk classification is called impaired risk or table-rated life insurance. The substandard risk class refers to people who have significant health impairments. These individuals may have to pay an extra fee or “table rating” depending on their risks to the issuing life insurance company.

What is the purpose of a disclosure statement in life insurance policies?

Answer: To explain features and benefits of a proposed policy to the consumer. A disclosure statement is a statement in an official document that spells out the terms and conditions, features, benefits, risks, and rules in a financial transaction.

Which type of insurance policy generates immediate cash value?

Permanent life insurance is the most likely option to provide a cash value component. Types of permanent life insurances include: Whole life insurance. Universal life insurance (and subtypes including indexed and variable)

What is the purpose of a key person insurance quizlet?

The purpose of key person insurance is to mitigate the loss to the business due to the death of a key employee.

Which of the following best describes fixed period settlement option?

Which of the following best describes fixed period settlement options? Both the principal and interest will be liquidated over a selected period of time. Under the fixed period option (also called period certain), a specified period of years is selected, and equal installments are paid to the recipient.

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