Policy Riders, Provisions, Options, and Exclusions
A policy names one primary beneficiary and one contingent beneficiary. The primary beneficiary dies before the insured, but the contingent beneficiary survives the insured. Who receives the proceeds under the usual designation?
Answer and explanation
Answer: C. Because the primary beneficiary did not survive the insured, the surviving contingent beneficiary is next under the usual designation. Actual policy language and any governing law still control.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — Beneficiary Information (2): primary and contingent distribution order
More policy riders, provisions, options, and exclusions questions
- A flexible-premium policyowner pays the illustrated planned premium, but policy value later becomes insufficient for the monthly deduction. Which conclusion is most accurate?
- A governing beneficiary instrument expressly states how to distribute proceeds after simultaneous deaths. How does that fact affect Texas's default survival rules?
- A grandparent buys a juvenile life policy on a 5-year-old grandchild with a payor benefit rider. The grandparent dies 3 years later. What occurs regarding policy premiums?
- A life policy contains a status-type war exclusion and the insured, a service member, dies of an illness while stationed overseas in peacetime. How does the exclusion operate?
- A parent pays premiums on a juvenile life policy and dies before the insured child reaches majority. If the policy has a payor benefit rider and its conditions are met, what happens next?
- A parent wants life proceeds reserved for a young child. Which arrangement best addresses the problem that an insurer will not pay proceeds directly to a minor?
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