Policy Riders, Provisions, Options, and Exclusions
What distinguishes a collateral assignment from an absolute assignment of a life policy?
Answer and explanation
Answer: C. Collateral assignment pledges policy proceeds up to debt owed to a creditor; absolute assignment transfers total policy ownership.Source: Texas Department of Insurance Guide — Assigning Death Benefits
More policy riders, provisions, options, and exclusions questions
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
- An insured understated her age by 5 years on the application. At death, the insurer discovers the misstatement. How does the insurer handle the claim?
- An insured wants a benefit that supplies income after a qualifying total disability rather than merely waiving policy charges. Which rider most directly fits?
- An insured whose policy carries a standard aviation exclusion dies as a fare-paying passenger on a scheduled commercial airline. What does the insurer ordinarily pay?
- An insured with an accidental death and dismemberment rider loses the sight of both eyes in a covered accident. What does the rider ordinarily provide?
- An insurer tries to add an aviation exclusion after issue even though no aviation risk was disclosed or identified during underwriting. How does that compare with the Compact standard?
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.