ANSWER: D EXPLANATION: The policyowner must have an insurable interest in the insured (his/her own life if the policyowner and the insured is the same person), or in the life of a family member or a business partner.
Which type of policy will provide permanent protection?
Permanent insurance provides lifelong protection, and the ability to accumulate cash value on a tax-deferred basis. Unlike term insurance, a permanent insurance policy will remain in force for as long as you continue to pay your premiums.
What is Indisputability clause?
Indisputability clause
According to Section 45 of the Insurance Act, insurers cannot question a policyholder’s declaration after two years of the date of issuing the policy, citing inaccurate or false statement made in the application or any report of the medical officer.
Which of the following would help prevent a universal life policy from lapsing?
Cash Account will Cover Premiums – If for some reason you become strapped financially, the insurance company will use the funds in your cash account to pay your premium(s) thereby preventing your policy from lapsing.
Who is third party owner?
Third Party Owner means any person who is the legal or beneficial owner (including a Lessor) of any Assets used or occupied by, or in the possession of the Deed Company as at the Appointment Date.
Who can have insurable interest?
Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without repairment or damage, of the insured object (or in the case of a person, their continued survival).
Who is the beneficiary of a life insurance policy?
A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. For life insurance coverage, that is the death benefit your policy will pay if you die. For retirement or investment accounts, that is the balance of your assets in those accounts.
Who is issued a certificate of insurance with a group policy?
Who is issued a certificate of insurance with a group insurance policy? The participant is issued a certificate of insurance with a group insurance policy.
What type policy allows a partial surrender?
What type policy allows a partial surrender? A partial surrender is allowed in a universal life policy.
Who is protected under Incontestability clause?
In life insurance policies, an incontestability clause protects the policyholder and prevents the policy provider from tampering with any part of the insurance coverage based on a mistranslation or misstatements by the insured (policy holder) after a period of time.
What is the incontestable clause?
life insurance
Perhaps the best-known is the incontestable clause, which provides that if a policy has been in force for two years the insurer may not afterward refuse to pay the proceeds or cancel the contract for any reason except nonpayment of premiums.
What is Section 41 of Insurance Act?
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to 1[take out or renew or continue] an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown
Who is the policyowner in credit life insurance quizlet?
Which of the following is TRUE about credit life insurance? Creditor is the policyowner. An employee quits his job on May 15 and doesn’t convert his Group Life policy to an individual policy for 2 weeks.
When an insured dies who has first claim to the death proceeds of the insured life insurance policy?
Your life insurance policy should have both “primary” and “contingent” beneficiaries. The primary beneficiary gets the death benefits if he or she can be found after your death. Contingent beneficiaries get the death benefits if the primary beneficiary can’t be found.
What is the death protection component of universal life insurance?
Like many permanent life policies, universal life insurance combines a savings component (called “cash value”) with lifelong protection. When you pass away, the policy’s death benefit is paid out to your beneficiaries.
What is the irrevocable beneficiary?
An irrevocable beneficiary is a person who cannot be easily changed or removed from your life insurance policy.
Who makes legal enforceable promises?
Unilateral Contract — a contract in which only one party makes an enforceable promise. Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims. By contrast, the insured makes few, if any, enforceable promises to the insurer.
Who is second party?
Second party is someone related to the person (trainer/instructor/employer) declaring that the person is competent. Third party would require an entirely independent party to declare the person competent.
