Life Insurance Basics
An applicant pays the premium with the application and receives a conditional receipt, then dies before the policy is issued. What governs the claim?
Answer and explanation
Answer: A. A conditional receipt puts cover in force from the stated date provided the proposed insured proves insurable on the terms applied for, so the claim turns on insurability rather than on how far the file had progressed. Intention and administration are not the test.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, conditional receipt
More life insurance basics questions
- A family will need income for the twelve years until the youngest child finishes school. What is that period usually called?
- A parent buys life insurance so the family can keep the house if he dies. Which personal use is that?
- A planner totals a family's final expenses, mortgage balance, and income needs, then subtracts savings and Social Security benefits. Which method is being used?
- A producer adopts the title 'Certified Senior Retirement Specialist', which no organisation confers. How does Regulation 199 treat that?
- A variable whole life owner reallocates policy value among available stock and bond choices. Which account description should the producer use?
- A young professional with modest savings buys a large policy. Which personal use does that serve?
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