Question 4002 of 287 · Texas Life, Accident and Health Agent Exam

A life settlement is a transaction in which

Exactly one answer is correct.

Athe insurer pays a terminally ill insured part of the death benefit as an advance
Bthe owner surrenders the policy and receives only the cash value less surrender charges, unless the applicant requests otherwise in writing
Cthe beneficiary sells the right to receive proceeds to the insured's creditors
Dthe owner sells an existing life policy to a third party for more than its cash surrender value

Show solution

Correct answer to question 4002

D: the owner sells an existing life policy to a third party for more than its cash surrender value

Explanation

The buyer takes over premium payments and collects the death benefit. A viatical settlement is a similar sale involving an insured who is terminally ill.

4003In a contributory group life plan,
4004In a noncontributory group life plan, the employer pays the entire premium, and
4006A qualified retirement plan is one that
4007Which of these is an example of a nonqualified plan?
4008Key person life insurance is purchased by a business to
4009A buy-sell agreement funded by life insurance is intended to

A life settlement is a transaction in which

Correct answer to question 4002

Explanation

More questions: Life: Retirement and Other Insurance Concepts