Life Insurance Policy Provisions, Options, and Riders
A policy designates 'my children' as beneficiary and a child is born after the policy is issued. How is that child treated?
Answer and explanation
Answer: C. A class designation is read as of the insured's death, so a child born after issue takes a share along with the others in the class. That is the practical reason for using a class designation instead of naming each individual and having to endorse the policy on each birth.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, beneficiary designation
More life insurance policy provisions, options, and riders questions
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A dividend declared happens to exceed the premium next falling due under this option. What ordinarily follows?
- A New York beneficiary asks the insurer to stop the owner from changing the designation. What is the position?
- A New York owner assigns a life policy as collateral for a loan. What does the assignment achieve?
- A payee elects a life income with a ten year period certain and dies in the eighth year. What does the insurer do?
- A policyowner declines several offered cost of living increases in a row. What is the usual consequence under the rider?
621 New York questions like this one.
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