Policy Riders, Provisions, Options, and Exclusions
A designation names three primary beneficiaries but assigns no percentages. All three survive the insured. Under the default stated in the Compact application standard, how are proceeds divided?
Answer and explanation
Answer: D. The Compact application standard permits a default providing equal division among all named primary beneficiaries who survive the insured when no other direction is given. Contingent beneficiaries are next only if no primary beneficiary survives.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — Beneficiary Information (2): equal distribution among surviving primary beneficiaries
More policy riders, provisions, options, and exclusions questions
- A policyowner's guaranteed insurability rider lists the birth of a child as an alternate option date. What may the owner generally do on that date?
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
- A proposed insured disclosed membership in the U.S. military on the application. Under the Compact standard, may the base policy exclude death solely as a result of war or military service?
- A return of premium rider is attached to a permanent life policy. What does the rider add to the amount payable at the insured's death?
- A scheduled-premium life policy's grace period expires without payment, and no nonforfeiture or automatic-loan protection continues coverage. What follows?
- A terminally ill insured accelerates part of a policy's death benefit. What should the beneficiary expect at the insured's later death?
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