L07 Life Insurance Documentation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on L07 Life Insurance Documentation, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our L07 Life Insurance Documentation MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of L07 Life Insurance Documentation mcq questions that explore various aspects of L07 Life Insurance Documentation problems. Each MCQ is crafted to challenge your understanding of L07 Life Insurance Documentation principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our L07 Life Insurance Documentation MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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L07 Life Insurance Documentation MCQs | Page 1 of 11

Discover more Topics under IC38 Life Insurance Agent Exam

Q1.
In the case where the nominee is a minor, what additional step must the policyholder take?

a.

Nominate a secondary beneficiary

b.

Appoint an appointee

c.

Cancel the nomination

d.

Surrender the policy

Discuss
Answer: (b).Appoint an appointee Explanation:When the nominee is a minor, the policyholder needs to appoint an appointee. The appointee must sign the policy document to consent to acting in that role.
Q2.
What happens to the status of appointees when the nominee reaches the majority age?

a.

Appointees continue to hold their status

b.

Appointees become the policyholders

c.

Appointees lose their status

d.

Appointees are automatically replaced by the legal heirs

Discuss
Answer: (c).Appointees lose their status Explanation:The appointees lose their status when the nominee reaches the majority age.
Q3.
If no appointee is designated, and the nominee is a minor, who receives the death claim proceeds on the death of the life assured?

a.

The insurance company

b.

The policyholder

c.

The legal heirs of the policyholder

d.

The nominee

Discuss
Answer: (c).The legal heirs of the policyholder Explanation:If no appointee is given, and the nominee is a minor, the death claim is paid to the legal heirs of the policyholder.
Q4.
How is the death claim payable when more than one nominee is appointed?

a.

The death claim is paid to the nominee with the highest priority

b.

The death claim is paid to all nominees jointly

c.

The death claim is paid to the survivor or survivors among the nominees

d.

The death claim is not payable to the nominees

Discuss
Answer: (b).The death claim is paid to all nominees jointly Explanation:When more than one nominee is appointed, the death claim will be payable to them jointly, meaning it is paid to all the nominees together.
Q5.
How are nominations made after the commencement of the policy made effective?

a.

Nominations are effective immediately

b.

Nominations are not allowed after the policy has commenced

c.

Nominations have to be communicated to the insurers to be effective

d.

Nominations can only be made through a will

Discuss
Answer: (c).Nominations have to be communicated to the insurers to be effective Explanation:Nominations made after the commencement of the policy have to be intimated to the insurers to be effective.
Q6.
According to Section 39(11) of the Insurance Act, who is entitled to the proceeds and benefits of a policy if the policyholder dies after the policy matures but before the proceeds are received?

a.

The insurance company

b.

The legal heirs of the policyholder

c.

The nominee

d.

The appointee

Discuss
Answer: (c).The nominee Explanation:According to Section 39(11) of the Insurance Act, if the policyholder dies after the maturity of the policy but the proceeds and benefits of the policy have not been made to him because of his death, his nominee shall be entitled to the proceeds and benefits of his policy.
Q7.
How is assignment of a life insurance policy defined?

a.

The transfer of the policyholder's rights, title, and interest in the policy to another person

b.

The cancellation of the policy

c.

The surrender of the policy for its cash value

d.

The termination of the policy

Discuss
Answer: (a).The transfer of the policyholder's rights, title, and interest in the policy to another person Explanation:Assignment of a life insurance policy is defined as the transfer of the policyholder's rights, title, and interest in the policy to another person.
Q8.
How is assignment of a life insurance policy defined?What is the person who transfers the rights, title, and interest in the policy called in an assignment?

a.

The transfer of the policyholder's rights, title, and interest in the policy to another personThe assignee

b.

The cancellation of the policyThe nominee

c.

The surrender of the policy for its cash valueThe beneficiary

d.

The termination of the policyThe assignor

Discuss
Answer: (b).The transfer of the policyholder's rights, title, and interest in the policy to another personThe assignor Explanation:Assignment of a life insurance policy is defined as the transfer of the policyholder's rights, title, and interest in the policy to another person.The person who transfers the rights, title, and interest in the policy is called the assignor.
Q9.
What is the term for the person to whom the policy rights, title, and interest are transferred in an assignment?

a.

The nominee

b.

The assignor

c.

The beneficiary

d.

The assignee

Discuss
Answer: (d).The assignee Explanation:The person to whom the policy rights, title, and interest are transferred in an assignment is called the assignee.
Q10.
What happens to the nomination when an assignment is made to the insurance company for a policy loan?

a.

The nomination is cancelled

b.

The policyholder can nominate a new beneficiary

c.

The policy continues with the same nomination

d.

The nominee becomes the assignee

Discuss
Answer: (c).The policy continues with the same nomination Explanation:When an assignment is made to the insurance company for a policy loan, the policy continues with the same nomination.
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