Premium mode refers to how often premiums are scheduled, such as monthly, quarterly, semiannual, or annual.
Example: A client or producer applies this rule in a policy situation. The correct concept is The frequency of premium payments. Premium mode refers to how often premiums are scheduled, such as monthly, quarterly, semiannual, or annual.
PTH original exam-prep item • Original practice item
The primary beneficiary has first priority to receive proceeds if living and eligible under the policy.
Example: A client or producer applies this rule in a policy situation. The correct concept is Primary beneficiary. The primary beneficiary has first priority to receive proceeds if living and eligible under the policy.
PTH original exam-prep item • Original practice item
Insurers may use modal factors so more frequent payments can total more than one annual payment.
Example: A client or producer applies this rule in a policy situation. The correct concept is Modal factors and administrative costs may apply. Insurers may use modal factors so more frequent payments can total more than one annual payment.
PTH original exam-prep item • Original practice item
A contingent beneficiary is next in line if the primary beneficiary does not receive the proceeds.
Example: A client or producer applies this rule in a policy situation. The correct concept is The primary beneficiary cannot receive them under the policy. A contingent beneficiary is next in line if the primary beneficiary does not receive the proceeds.
PTH original exam-prep item • Original practice item
Traditional whole life generally uses level premiums designed to fund lifetime protection.
Example: A client or producer applies this rule in a policy situation. The correct concept is Traditional whole life. Traditional whole life generally uses level premiums designed to fund lifetime protection.
PTH original exam-prep item • Original practice item
A revocable beneficiary can generally be changed by the policyowner without beneficiary consent.
Example: A client or producer applies this rule in a policy situation. The correct concept is Revocable. A revocable beneficiary can generally be changed by the policyowner without beneficiary consent.
PTH original exam-prep item • Original practice item
Universal life allows flexible premiums within policy limits and funding requirements.
Example: A client or producer applies this rule in a policy situation. The correct concept is Universal life. Universal life allows flexible premiums within policy limits and funding requirements.
PTH original exam-prep item • Original practice item
An irrevocable beneficiary has vested rights, so changes generally require that beneficiary's consent.
Example: A client or producer applies this rule in a policy situation. The correct concept is The irrevocable beneficiary's consent. An irrevocable beneficiary has vested rights, so changes generally require that beneficiary's consent.
PTH original exam-prep item • Original practice item
Gross premium includes expense loading in addition to the net-premium assumptions.
Example: A client or producer applies this rule in a policy situation. The correct concept is Expenses. Gross premium includes expense loading in addition to the net-premium assumptions.
PTH original exam-prep item • Original practice item
Per stirpes distributes a deceased beneficiary's share down that beneficiary's family branch.
Example: A client or producer applies this rule in a policy situation. The correct concept is That beneficiary's descendants by branch. Per stirpes distributes a deceased beneficiary's share down that beneficiary's family branch.
PTH original exam-prep item • Original practice item