Your Second Step in Determining a Life Insurance Program Should

question 98

Multiple Choice

Your second step in determining a life insurance program should be to

• A)consult a local insurance company agent.
• B)consider whether you wish to leave your dependents debt free
• C)estimate your life insurance requirements.
• D)determine your life insurance objectives.
• E)evaluate the ratings of the insurance company.

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Definitions:

Implied Authority

Authority of an agent that is not explicitly stated but is assumed to be granted in order to perform acts necessary to fulfill the purpose of an agency relationship.

Winding Up

The process of concluding a company’s operations, settling its liabilities, and distributing remaining assets to shareholders.

Novation

The act of replacing an existing contract with a new one, where a new party takes over rights and obligations that were originally held by one of the initial parties.

RUPA

The Revised Uniform Partnership Act, which is a set of laws intended to govern the operations of partnerships in the United States.