Life Insurance Policies
A parent carrying two hundred thousand dollars of life insurance applies for cover on a six year old child. What ceiling does section 3207(b) set?
Answer and explanation
Answer: D. The limit is the greatest of the three measures: fifty thousand dollars, or fifty per cent of the two hundred thousand in force on the parent, which is one hundred thousand. The child is over four years and six months, so the twenty-five per cent measure does not apply.Source: N.Y. Ins. Law § 3207 — § 3207(b)
More life insurance policies questions
- Which combination of features defines a variable universal life (VUL) contract?
- Which combination of features most clearly signals variable universal life rather than ordinary whole life?
- Which description best distinguishes indexed universal life from variable universal life?
- Which elements does a continuous premium whole life policy guarantee?
- Which event gives rise to the conversion right under section 3220?
- Which is the most common type of group life plan sponsor?
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