Which of the following best describes a contingent beneficiary? a person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured. K has a life insurance policy where her husband is the beneficiary and her daughter is the contingent beneficiary.
How would a contingent beneficiary receive?
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured’s death. … J chooses a monthly premium payment mode on his Whole Life insurance policy.
What does contingent individual beneficiary mean?
A contingent beneficiary is a beneficiary of proceeds or a payout if the primary beneficiary is deceased or unable to be located. A contingent beneficiary can be named in an insurance contract or a retirement account.
Why does quarterly premium payments increase the annual cost of insurance?
Quarterly premium payments increase the annual cost of insurance because interest to the insurer is decreased while the administrative costs are increased. In Quarterly premium payments, the actuaries are entrusted with the responsibility of ascertaining the correct premium of an insured.
Which statement is true regarding a minor beneficiary quizlet?
Which statement is true regarding a minor beneficiary? In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.
Who you should never name as beneficiary?
Whom should I not name as beneficiary? Minors, disabled people and, in certain cases, your estate or spouse. Avoid leaving assets to minors outright. If you do, a court will appoint someone to look after the funds, a cumbersome and often expensive process.
What happens if no contingent beneficiary?
What Happens If There Is No Contingent Beneficiary? If the primary beneficiary is dead, can’t be found, or refuses the asset, and there is no contingent beneficiary, then the asset goes into your general estate and will need to go through probate. If you have a will, the asset will go to those designated in the will.
Can the same person be a primary and contingent beneficiary?
Can the Same Person be My Primary and Contingent Beneficiary? Naming the same person as both a primary and a contingent beneficiary is a common Estate Planning mistake. Since the contingent beneficiary is a back up, it’s important to not name the same person in both roles.
What is the difference between primary beneficiary and contingent beneficiary?
The primary beneficiary is the person or entity who has the first claim to inherit your assets after your death. … The only way a contingent beneficiary inherits anything from the account or policy is if the primary beneficiary or beneficiaries have predeceased you or otherwise can’t be found.
Who should be your primary beneficiary?
It’s common for policyholders to name their spouse or domestic partner as the primary beneficiary and then their children or their children’s guardian as the contingent, for example. That way, if anything happened to both parents, the proceeds would go to the child/children or their guardian to manage.
What is the underlying concept of level premiums?
What is the underlying concept regarding level premiums? The early years are charged more than what is needed. A level premium indicates. the premium is fixed for the entire duration of the contract.
Which of the following is a factor in the cost of insurance?
Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.
Which of the following is the reimbursement of benefits for the treatment of a beneficiary?
Which of the following is the reimbursement of benefits for the treatment of a beneficiary’s injuries caused by a third party? “Subrogation”. Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured.
Which type of insurance beneficiary requires his/her consent?
If you’re the owner of a life insurance policy with a revocable beneficiary, you can change the beneficiary of your policy without consent from the current beneficiary. On the other hand, a policy with an irrevocable beneficiary requires the policyholder to get the current beneficiary’s consent before making a change.
Which would be described as a beneficiary designation by class?
T is covered by an Accidental Death and Dismemberment (AD&D) policy that contains an irrevocable beneficiary. … Which would be described as a beneficiary designation by class? Children of the insured. A life insurance beneficiary died after receiving only six payments under the policy’s life income settlement option.
What is a common disaster clause in insurance?
Under the common disaster provision, a certain period of time is designated so that, even though both the insured and the beneficiary died as a result of the same accident, it is possible to determine that the beneficiary died last and policy disbursements would be distributed accordingly. …