Life Insurance Basics
A business owner needs cash within days and holds a whole life policy with substantial value. How does liquidity serve here?
Answer and explanation
Answer: D. Liquidity means the owner can reach the cash value during life, by loan or by surrender, without the delay of selling other assets. The face amount is payable at death, and an exchange or assignment does not put cash in hand in the same way.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, liquidity
More life insurance basics questions
- May a New York producer point to the Life Insurance Company Guaranty Corporation as a reason to buy?
- On what must a recommendation under Regulation 187 be based?
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
- What determines the effective date of coverage where no premium accompanies the application?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.