Life Insurance Basics
What does liquidity mean in the context of a permanent life policy?
Answer and explanation
Answer: A. Liquidity refers to the owner's ability to reach the policy's cash value during life, by policy loan or surrender. Prompt claim payment, premium modes, and assignment are separate features of the contract.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, cash accumulation and liquidity
More life insurance basics questions
- In a corporate key-person life insurance arrangement, who is the policyowner, premium payor, and beneficiary?
- May a New York producer point to the Life Insurance Company Guaranty Corporation as a reason to buy?
- On what must a recommendation under Regulation 187 be based?
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
621 New York questions like this one.
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