Third-Party Rights in a Life Insurance Policy Do Not Vest

question 53

Multiple Choice

Third-party rights in a life insurance policy do not vest until the ________.

• A)promisor's death
• B)promisee's will is executed
• C)promisee's death
• D)policy is recorded
• E)policy is executed

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Definitions:

Public Share Issue

The process by which a company offers new shares for sale to the general public for the first time, through an initial public offering (IPO).

Prospectus

A formal legal document that is required by and filed with securities regulatory bodies to provide details about an investment offering for sale to the public.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically in financial or real estate transactions, facilitating deals in exchange for a commission or fee.

Share Options

Rights granted by a company to its employees or directors to buy shares in the company at a fixed price for a limited period.