Question

What is the significance of appointing a trustee for a life insurance policy under the MWP Act?

a.

To surrender the policy

b.

To allow the policyholder full control of the proceeds

c.

To ensure that the policy can be assigned to another person

d.

To administer the trust property, including investing the insurance proceeds on behalf of the beneficiaries

Posted under L05 Applications of Life Insurance IC38 Life Insurance Agent Exam

Answer: (d).To administer the trust property, including investing the insurance proceeds on behalf of the beneficiaries Explanation:Appointing a trustee for a life insurance policy under the MWP Act is important to administer the trust property, including investing the insurance proceeds on behalf of the beneficiaries.

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Q. What is the significance of appointing a trustee for a life insurance policy under the MWP Act?
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