Life Insurance Policy Provisions, Options, and Riders
An insured and the primary beneficiary die in the same accident and the common disaster clause applies. Where do the proceeds go?
Answer and explanation
Answer: D. The clause presumes the beneficiary predeceased the insured, so the contingent beneficiary takes and the money stays out of the primary beneficiary's estate. Only where no contingent beneficiary is named would the proceeds fall into the insured's estate.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, common disaster clause
More life insurance policy provisions, options, and riders questions
- How is the interest credited under the accumulation at interest dividend option treated for tax?
- How is the interest paid under the interest only settlement option treated for tax?
- How is the lump sum paid under the cash settlement option treated for federal income tax?
- How may an accelerated payment of the death benefit be provided under New York law?
- If a cash-value policyowner stops paying premiums and selects the extended term nonforfeiture option, what coverage is provided?
- If a traditional policy uses the amount-purchased method for a misstated age, what is adjusted?
621 New York questions like this one.
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