Susan Took Out a Life Insurance Policy on Herself,paying All

question 26

Multiple Choice

Susan took out a life insurance policy on herself,paying all of the premium payments.She named her daughter,Jessica,as the beneficiary under the policy.Jessica has not given anything in consideration for the policy.Jessica is:

• A) a donee beneficiary who has rights to enforce the policy once Susan dies.
• B) a creditor beneficiary who has rights to enforce the policy once Susan dies.
• C) an incidental beneficiary because Jessica did not give any consideration for the policy and therefore cannot enforce the policy even when Susan dies.
• D) None of the above.

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Definitions:

Commodity Futures Pricing

The process of determining the price at which commodity futures contracts are traded in the market.

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The current price in the marketplace at which a given asset, such as securities, commodities, or currencies, can be bought or sold for immediate delivery.

Cost of Carry

The cost associated with holding a financial position, including storage costs for commodities or interest costs for financial securities.

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