Which of the Following Statements About the Assignment of a Life

question 52

Multiple Choice

Which of the following statements about the assignment of a life insurance policy is true?

• A)The insurer must be notified of any assignment or the death proceeds will be paid to the named beneficiary.
• B)Under an absolute assignment,the only right transferred to a new owner is the right to change the beneficiary designation.
• C)As long as a collateral assignment exists,a creditor will receive the entire death benefit even if the loan has been repaid.
• D)Assignment may be made only with the permission of the insurer and the beneficiary.

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Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Newborn Infant

An infant who is within the first hours to a few weeks of life, characterized by rapid development and adaptation to the external world.

Habituation

The process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Babble

The sounds, speech, or nonsense talk uttered by infants as they begin to experiment with vocalizations.