Life Insurance Policy Provisions, Options, and Riders
What distinguishes a class beneficiary designation from an individual beneficiary designation?
Answer and explanation
Answer: D. A class designation identifies the beneficiaries by their relationship, for example the children of the insured, so membership is determined at the insured's death rather than by names written into the policy. An individual designation names the persons themselves, and the insurer has no power to alter shares.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, beneficiary designation
More life insurance policy provisions, options, and riders questions
- How does a survivorship clause in a common disaster provision operate?
- How does an automatic premium loan come to apply to a policy?
- How does the interest only settlement option work?
- How does the reduction of premium dividend option work?
- How does waiver of cost of insurance differ in effect from waiver of premium on a fixed whole life policy?
- How is a children's term rider ordinarily priced and applied?
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