1. The options for the disbursement of life insurance death proceeds include all of the following EXCEPT:
Leave with insurer to pay interest
Paid in one cash payment
Use to purchase paid-up insurance for the beneficiary
Paid as a life income to the beneficiary, with a certain number of payments guaranteed
2. Mr. Green is married and has two children, Harold and Billy. The beneficiary designation on Mr. Green’s life insurance policy reads, “Proceeds to be paid to Mrs. Green, wife of the insured, unless she precedes Mr. Green in death or dies as a result of the same accident, in which case benefits will be paid to Harold and Bill Green in like shares.”
Which of the following statements concerning Mr. Green’s beneficiary designation is true?
Harold and Billy will be paid benefits if Mr. Green dies before Mrs. Green.
Mrs. Green is a contingent beneficiary.
Mrs. Green is the primary beneficiary, Harold and Billy are contingent beneficiaries.
Harold and Billy are primary beneficiaries