LOMA 281 Module 3 Exam Questions and Answers All Correct
9 views 0 purchase
Course
LOMA 281
Institution
LOMA 281
LOMA 281 Module 3 Exam Questions and Answers All Correct
Ms. Yanar wants to receive annuity income for life. She also wants to be sure that the annuity makes payments for at least 10 years. If she dies before the end of 10 years, her beneficiary will receive the remaining payments.
a. Joint ...
LOMA 281 Module 3 Exam
Questions and Answers All
Correct
Ms. Yanar wants to receive annuity income for life. She also wants to be sure that the
annuity makes payments for at least 10 years. If she dies before the end of 10 years,
her beneficiary will receive the remaining payments.
a. Joint and survivor annuity
b. Life income annuity with period certain
c. Life income annuity with refund - Answer-B.
Ms. Yanar wants to be sure that all of the money paid for the annuity will be paid to her
or her heirs, even if she dies soon after payments begin.
a. Joint and survivor annuity
b. Life income annuity with period certain
c. Life income annuity with refund - Answer-C.
Ms. Yanar wants her husband to continue to receive an income after her death.
a. Joint and survivor annuity
b. Life income annuity with period certain
c. Life income annuity with refund - Answer-A.
assignment - Answer-An agreement under which an insurance policyowner transfers
some or all of his ownership rights in the policy to another party.
assignor - Answer-The policyowner who makes an assignment of a life insurance policy.
assignee - Answer-The party to whom life insurance property rights are transferred.
assignment provision - Answer-A life insurance policy provision which describes the
roles of the insurer and the policyowner when the policy is assigned.
Which option below is a requirement for a valid assignment? (Choose all that apply)
a. An assignment can't be made for illegal purposes.
,b. An assignment can't infringe on the vested rights of a beneficiary
c. An assignor must have contractual capacity—the legal capacity to make a contract. -
Answer-A, B, 7 C - An assignment can't be made for illegal purposes or infringe on the
vested rights of a beneficiary, and the assignor must have contractual capacity
Two types of assignment - Answer-absolute assignment
collateral assignment
absolute assignment - Answer-An assignment of a life insurance policy under which the
policyowner transfers all policy ownership rights to the assignee. Contrast with collateral
assignment
collateral assignment - Answer-temporary assignment of the monetary value of a life
insurance policy as collateral—or security—for a loan. Contrast with absolute
assignment.
how a collateral assignment differs from an absolute assingment - Answer-- A collateral
assignee has a vested right to only the policy's monetary values. Policyowner retains all
other ownership rights.
- A collateral assignee's vested right to the policy's monetary values is limited to the
debt the assignor owes to the assignee.
- A collateral assignee's rights to policy values are temporary.
Which statements about a collateral assignee's rights are correct? (Choose all that
apply.)
a. The collateral assignee can name the policy beneficiary and select a dividend
payment option.
b. The collateral assignee can receive only the amount of the indebtedness; the policy
beneficiary receives any remaining amount.
c. The collateral assignee's rights to policy values are permanent. - Answer-B. - The
rights to name the policy beneficiary and select a dividend payment option remain with
the policyowner. The assignee's rights to the policy's values are limited to the debt the
assignor owes to the assignee. If the assignor repays the debt, the assignment
terminates, and all of the policy's ownership rights revert to the policyowner.
Endorsement method - Answer-A method of transferring ownership of a life insurance
policy under which the ownership change becomes effective when the policyowner
notifies the insurer, in writing, of the change and the insurance company notes the
ownership change in its records.
- commonly used when a policy is given as a gift
- policy owner notifies insurer in writing o transfer
, Under a collateral assignment, the policyowner permanently transfers all of his policy
ownership rights to the assignee, and the assignee becomes the policyowner.
a. True
b. False - Answer-B. - A collateral assignment is temporary. The collateral assignee's
ownership rights are limited to ownership rights that concern the monetary value of the
policy. The policyowner retains all rights that do not affect the policy's value.
A change of ownership provision usually states that the insurer is not responsible for
any payments it made to the owner of record before it received written notice of an
ownership change and recorded that change.
a. True
b. False - Answer-A. - Changing the owner or naming a new successor owner cancels
any prior choice of successor owner, but does not change the beneficiary.
Waiver of premium for disability (WP) Benefit - Answer-A supplemental life insurance
policy benefit under which the insurer promises to give up—to waive—its right to collect
premiums that become due while the insured is totally disabled.
- satisfies a 3-6 month waiting period: meaning for the first 3-6 months the person must
cover it
The WP benefit typically defines total disability for the insured as being unable to
perform the duties of?
a. Any occupation
b. The insured's own previous occupation
c. Any occupation for which the insured is reasonably suited by education, training, or
experience - Answer-C.
Waiver of premium for payor benefit - Answer-A supplemental life insurance policy
benefit which provides that the insurance company will waive the right to collect a
policy's renewal premiums if the policyowner dies or becomes totally disabled.
To add a waiver of premium for payor benefit to a life insurance policy, who do you think
must be insurable?
a. The insured
b. The policyowner
c .Both the insured and the policyowner
d. Neither the insured or the policyowner - Answer-C.
Wavior of premium for disability benefits compared - Answer-Insurer waives policy
premiums if the insured becomes totally disabled.
Designed for policies in which the policyowner is also the policy's insured
Total disability defined as
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.39. You're not tied to anything after your purchase.
