LESSON 4: LIFE INSURANCE PREMIUMS, PROCEEDS AND BENEFICIARIES

Section 4.5 Review

When a business is named as beneficiary, this type of transaction is referred to as a:

	a)	single party policy.
	b)	unilateral policy.
	c)	third-party policy.
	d)	class policy.
CORRECTTRY AGAIN (Lesson 4.5)Your answer has been saved.

When a trust is the named beneficiary, the fiduciary responsibility lies with the:

	a)	estate.
	b)	IRS.
	c)	trustee.
	d)	policyowner.
CORRECTTRY AGAIN (Lesson 4.5.1)Your answer has been saved.

If a policyowner fails to designate a beneficiary, the proceeds of the policy go to the insured's estate where they are no longer protected from creditors.

	a)	True
	b)	False
CORRECTTRY AGAIN (Lesson 4.5.2)Your answer has been saved.