All of the following statements are correct regarding Credit Life Insurace EXCEPT:

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All of the following statements are correct regarding Credit Life Insurace EXCEPT:

A. Benefits are paid to the borrowers beneficiary

B. The amount of Insurance permissible is limited per borrower

C. Premiums are usually paid by the borrower

D. Benefits are paid to the creditor

ANSWER: A. Benefits are paid to the borrower's beneficiary

Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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