LLQP Module 2 – Vocab questions with correct answers

Absolute assignment Answer The transfer of all the rights of the original policy owner to another party, including the right to appoint a beneficiary basic promise Answer The promise in the policy that identified the life insured, the amount of the insurance payable, when and where that amount is payable, and to whom it is payable binding agreement Answer A legal contract between parties(participating people in the contract) that is enforceable by law case law Answer Common Law collateral assignment Answer when a policy is assigned to a financial institution as security for a loan common law (also known as case law) Answer Comprises of the bulk of law - long established custom as its guiding principle. consideration Answer A requirement of a contract-an exchange of value IE the first payment of a life insurance premium is the CONSIDERATION contingent beneficiary Answer A life insurance beneficiary if the first written beneficiary is dead or legally unable to receive the death benefit. contract Answer A legally binding document