Chapter 5 Review Questions
a. the viatical settlement provider's in-house staff
*b. a physician independent of the viatical settlement provider
c. the most recent Insurance Commissioner's Standard Ordinary (CSO) mortality table
d. depending on circumstances any of the above can provide a reasonable estimation of life expectancy
a. the viator's dependence on public assistance
b. the financial needs of the viator's beneficiaries
*c. the rating of the insurance carrier
d. claims of creditors on the viator
a. the name, address and telephone number of the viatical settlement provider
*b. the viatical settlement provider may contact the insured on a quarterly basis (or monthly in the case of life expectancies less than one year)
c. the amount of any viatical broker's compensation
d. possible loss of coverage under family riders or joint life policies
*a. the name, business address and telephone number of the escrow agent
b. that there are possible alternatives, such as accelerated death benefit rider or policy loan, under the terms of the policy
c. that viatical settlement proceeds may be attached by the viator's creditors
d. that viatical settlement proceeds may adversely affect the viator's eligibility for public assistance programs
a. 7 days of receipt of the proceeds
*b 15 days of receipt of the proceeds
c. 21 days of receipt of the proceeds
d. 30 days of receipt of the proceeds
*a. the identity of the party responsible for future premium payments
b. the possible taxability of viatical settlement proceeds
c. that viatiacal settlement proceeds are subject to creditor claims
d. that other rights and benefits, such as disability benefits or other riders, may be lost when the policy is viaticated
a. the client may benefit from the sale of a policy through a lifetime settlement
b. the financial planner may benefit from arranging a lifetime settlement
c. the client may hold the financial planner liable for not disclosing this alternative
*d. all of the above
a. need not consider the sale of the policy in a lifetime settlement
*b. must regularly examine the possibility of selling the policy in lifetime settlement
c. must disclose the opportunity of lifetime settlements to the trust's grantor and beneficiaries
d. must liquidate all policies and invest the proceeds in more suitable investments
a. conduct a written review of the policy upon acceptance of the fiduciary account
b. conduct a written review of the policy once a year
*c. both a and b
d. neither a nor b
a. accelerated death benefits
b. special loan provisions that allow borrowing based on the policy's face value
c. borrowing against the policy's cash value
*d. any of the above
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