Retirement and Other Insurance Concepts
Under a third-party owned policy, who may take a policy loan against the accumulated cash value?
Answer and explanation
Answer: D. All living benefits, including loans, withdrawals, surrender, and beneficiary changes, belong to the owner. The insured has no such rights merely by being the person insured.Source: NAIC Life Insurance Buyer's Guide — Policy ownership: rights belonging to the policyowner
More retirement and other insurance concepts questions
- What conversion right do covered children have when reaching the age limit under a family rider?
- What disclosure document must be delivered to a consumer prior to or at the time of purchase of a variable annuity under federal securities law?
- What does it mean for a worker to be fully insured for Social Security survivor benefits?
- What happens in a life settlement transaction?
- What IRS exclusion ratio formula is used to determine the tax-free portion of non-qualified annuity payments received during annuitization?
- What IRS penalty tax applies to premature distributions taken from a Traditional IRA before age 59.5 unless a statutory exception applies?
590 Texas questions like this one.
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