Policy Riders, Provisions, Options, and Exclusions
Why is naming a minor child directly as a life insurance beneficiary problematic?
Answer and explanation
Answer: A. Insurance companies will not pay death benefits directly to minors; a court-appointed guardian or trust is required to receive funds.Source: NAIC Life Insurance Guide — PDF page 6, Minor Beneficiaries
More policy riders, provisions, options, and exclusions questions
- Which dividend option allows a participating policyowner to purchase additional small paid-up permanent coverage without evidence of insurability?
- Which exchange describes consideration in a life insurance contract?
- Which key details are summarized in the policy face page and insuring clause?
- Which life policy exclusion addresses death caused by hazards of the insured's specifically identified job?
- Which list contains common life insurance premium payment modes?
- Which party holds the exclusive right to borrow against policy cash values or request nonforfeiture options?
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.