Author Question: A life insurance policyholder may no longer need life insurance. Such a policyholder may sell the ... (Read 140 times)

bcretired · **on:** Jul 11, 2018

A life insurance policyholder may no longer need life insurance. Such a policyholder may sell the policy to a third party for more than its cash value.

The purchaser becomes the new beneficiary and is responsible for subsequent premium payments. Such a financial transaction is called a(n)
A) collateral assignment.
B) accelerated death benefits rider.
C) absolute assignment.
D) life settlement.

Question 2

A life insurance contractual provision protects the beneficiary by not permitting the insurer to introduce outside information to deny payment of the claim.

Such outside information might be notes that the agent took while the insured completed the application. This contractual provision is the
A) entire contract clause.
B) incontestable clause.
C) reinstatement clause.
D) change-of-plan provision.