Life Insurance Policies
What happens to a survivorship life policy when the first of the two insured lives ends?
Answer and explanation
Answer: B. Nothing is payable at the first death under a second to die contract, and premiums generally continue until both insureds have died. The face amount is not reduced and the policy does not become paid up at that point.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, survivorship life
More life insurance policies questions
- An employee leaving a job asks whether to convert the group cover or buy an individual policy. What should be considered first?
- An employee's group cover ends and the employee dies eighteen days later, having applied for no individual policy. What does section 3220 provide?
- An individual purchases a life insurance policy that provides coverage for exactly one year. At the end of the year, the policyowner can renew the coverage without proving insurability, but the premium will increase based on their attained age. What type of policy is this?
- An insured buys convertible term at age 30 and converts it to permanent insurance at age 40. Which age generally determines the new premium?
- An insured’s health deteriorates during a renewable term policy. At the end of the term, which feature is most valuable?
- An insured's health worsens before a renewable term policy expires. The renewal right is still available. Which outcome best reflects that feature?
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