LIFE PREMIUMS

Question 1

__ will assume that the primary died first

Answer 1

Simultaneous Death Act

Question 2

__ allows the dwath benifit prceeds to be paid to the

Answer 2

contingent benificiaries

Question 3

__ prevents the benificiary from spending recklessly by paying fixed amounts at a certain period of time.

Answer 3

spendthrift clause

Question 4

__ pays proceeds to someone not name in the policy that has a caalid tight

Answer 4

facilityj of payment( done witha moinor)

Question 5

__ cannot be changed without the written consent of the benificiary

Answer 5

irrevocable beificiary

Question 6

3 ways of succession?

Answer 6

primary,seconday, tertiary( no one named)

Question 7

By descent is __ or __

Answer 7

stirpes(blood) capita (all named living benificiaries

Question 8

__ is when the exsisting life insurance is assigned to another insurer for a new contract

Answer 8

section1035 exchange ( not taxable)

Question 9

name the parts of the policy that are not taxable?

Answer 9

premiums, death benifits, installments and prinicipals

Question 10

name the pportion that is taxable?

Answer 10

interest

Question 11

taxation of proceeds paid during lifetime are

Answer 11

policy surrender, accelerated death =benifit