Which of the Following Statements About Beneficiary Designations Is True

question 4

Multiple Choice

Which of the following statements about beneficiary designations is true?

• A)A primary beneficiary is entitled to the death proceeds of a life insurance policy only if the contingent beneficiary dies before the insured.
• B)If a revocable beneficiary designation is used,the insured must obtain the beneficiary's permission to exercise most policy rights.
• C)The effect of a class beneficiary is to divide death proceeds equally among the members of a particular group.
• D)Naming the insured's estate as primary beneficiary is the best way to avoid probate expenses,inheritance taxes,and claims of creditors.

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) by the cost of the investment.

Training Evaluation

The process of assessing the effectiveness of a training program, often using criteria such as learner satisfaction, learning achieved, and behavior change.

Break-Even

The point at which total costs and total revenue are equal, leading to no net loss or gain for a business.

Effect Size

A quantitative measure of the strength of a phenomenon or the magnitude of a difference between groups in research.