Chapter 4 Flashcards
Retirement and Other Insurance Conepts
1
Q
When the contract may be owned by someone other than the insured, what is it called.
A
Third-Party Ownership
2
Q
What is an individual or entity that is not an insured under the contract, but that has a legally enforceable right under it.
A
Third-Party Owner
3
Q
When are “Third-Party Ownership” policies typically used?
A
Businesses/Minors whose parents are the policyowners
4
Q
What is any financial transaction in which the owner of a life insurance policy sells a life insurance policy to a third party for some form of compensation, usually cash.
A
Life Settlement
5
Q
What type of assignment does a “Life Settlement” require
A
Absolute Assignment
6
Q
A
