Ethics Chapter 3 Flashcards
(15 cards)
Who receives pension benefits after death, even if another beneficiary is named?
A qualifying spouse, because spouses have rights under pension law.
What is probate?
Probate is the legal process where a will is validated as the most recent and valid will of the deceased.
What are the four options for pension funds when leaving an employer’s pension plan?
- Transfer to a LIRA
- Transfer to a new pension plan
- Purchase a deferred/immediate annuity
- Transfer to a life income fund (LIF)
Who determines how a death benefit is paid out?
The policyholder. They may restrict how funds are paid, and those instructions must be followed even if the beneficiary prefers a different method.
Who is the annuitant grantee/payee?
The person who will receive the annuity payments.
Who is the beneficiary/payee in an annuity?
The person who receives remaining benefits, if any, after the annuitant’s death.
Why might a life insurance claim be denied under public policy?
If the beneficiary murdered the life-insured, as profiting from a crime violates public policy.
Who else, besides a named beneficiary, could claim a life insurance policy?
- The policyholder (if outlives beneficiary)
- Assignee of policy (e.g., for a loan)
- Claimant under a court order (e.g., child support)
What happens if there’s uncertainty about who should receive a death benefit?
The insurer can remit the funds to the courts with a statutory declaration, and the court settles the matter.
Whats the time frame for a life insurance claim to to be paid?
30 days provided their is significant proof
What document would be required to establish proof of death in a life insurance claim
Funeral director’s statement
When is proof of age typically established in the insurance process
During the application process
How can irrevocable beneficiary be changed?
Only With the irrevocable beneficiaries consent
What is required to make a claim?
Claim form, documents proving age and identity along with proof of death
