Amy and Chung have been married for 20 years and they have a 15 year old son, Haru. They meet with you to discuss their insurance needs and are considering various options. In particular, Amy and Chung want to make sure Haru is protected. Based on this information, which of the following statements is CORRECT?
a)		If Amy and Chung apply for a policy on Haru’s life, it would be declined because there is no insurable interest.
b)		Haru cannot enter into an insurance contract on his own behalf because he has not acquired the rights to legal autonomy.
c)		Haru may enter into an insurance contract on his own behalf because he is capable of giving consent in connection with his own personal care.
d)		If Amy and Chung apply for a policy on Haru's life, it would be declined because Haru would not have the legal capacity to contract.

Sam is the policyholder and life insured on a whole life policy that names his sister, Consuela, as the revocable beneficiary. Sam has recently fallen on hard times financially and is concerned that his creditors may attempt to seize his policy. When Sam asks his insurance agent, Gerta, whether his policy can be seized by creditors, which of the following answers is CORRECT?
a)		Sam’s policy cannot be seized by creditors because the beneficiary is revocable.
b)		Sam’s policy can be seized by creditors because he has not designated a protected class beneficiary.
c)		Sam’s policy cannot be seized by creditors because the beneficiary meets the legislative definition.
d)		Sam’s policy can be seized by creditors because the beneficiary designation was made specifically to protect against seizure by creditors.

Marco purchases a life insurance policy with his wife, Jenna, as the life insured, and his son Antonio as irrevocable beneficiary. The policy has a $250,000 death benefit. Marco has not named a successor policyholder or policy co-owner. Which of the following CORRECTLY describes the outcome in the event of Marco’s death?
a)		The policy will be considered null and void.
b)		Antonio would receive the $250,000 death benefit.
c)		Marco’s estate would become the policy owner.
d)		Antonio’s beneficiary status would no longer be irrevocable.

Answer rating: 100% (QA)

Q1 Answer d If Amy and Chung apply for a policy on Harus life it would be declined because Haru woul... View the full answer