10 Questions
What is the primary role of a life settlement broker?
Soliciting and negotiating life settlement contracts for policyowners
Who does the term 'owner' refer to in the context of life settlement contracts?
Policyholders seeking to enter into life settlement contracts
Which entity is NOT included in the term 'owner' when discussing life settlement contracts?
Life settlement provider
What does 'life expectancy' represent in the context of life settlement contracts?
The insured's projected average lifetime based on actuarial tables
What distinguishes a life settlement broker from other entities involved in life settlement contracts?
Having a fiduciary duty to act in the best interest of policyowners
What is the main financial transaction involved in a life settlement?
Selling the life insurance policy to a third party
Why do policyowners often choose to sell their life insurance policies?
Because they feel they no longer need the coverage
When might a policyowner receive more money from a life settlement provider than by surrendering the policy for cash value?
When they have a life-threatening illness and a short life expectancy
What does the term 'business of life settlement' refer to?
Activities related to soliciting and selling a life settlement contract
In what scenario would a life settlement provider be interested in purchasing a policy?
When the policyowner has a terminal illness and limited life expectancy
Learn about life settlements, a financial transaction where the owner of a life insurance policy sells it to a third party for compensation. Understand the process and reasons why policyowners may choose to sell their policies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
