As a General Rule, Contracts Are Assignable

question 26

Multiple Choice

As a general rule, contracts are assignable:

• A) even if the policy's terms limit assignability.
• B) if they are not life insurance policies.
• C) even without a designated beneficiary's consent.
• D) if they are not property insurance policies.

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Definitions:

Liquidating Dividend

A special dividend paid to shareholders when a company is partially or completely dissolved, representing a return of capital rather than profit.

High-Dividend Payout

A company's policy or practice of distributing a large portion of its profits to shareholders in the form of dividends.

Tax Exemption

A portion of income or transaction that is free from tax by law, reducing the taxable income or value.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits to its shareholders at regular intervals.