Policy Riders, Provisions, Options, and Exclusions
An owner wants only the children who survive the insured to divide the class benefit equally, without preserving a deceased child's branch. Which designation most directly expresses that intent?
Answer and explanation
Answer: C. A per-capita designation distributes per person among the surviving members of the described class rather than preserving a deceased member's family branch. Clear wording is important to avoid unintended results.Source: National Association of Insurance Commissioners — Life Insurance — Tips for naming beneficiaries > Children > per stirpes and per capita
More policy riders, provisions, options, and exclusions questions
- A Texas individual life premium is overdue, but the insured dies during the policy's usual 31-day grace period. What is the usual claim result?
- A Texas life policy has remained in force for more than two years. A claim is filed based on information from the original application. What is the ordinary effect of the incontestability period?
- A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
- A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
- A variable life owner takes a policy loan and leaves it outstanding. Which effect should the owner expect?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.