An insured has a life insurance policy with a $100,000 death benefit. To secure a bank loan, the insured executes a collateral assignment. If the insured dies when the outstanding loan balance is $30,000, how will the death benefit be distributed?

• AThe full $100,000 death benefit is paid directly to the bank as the collateral assignee
• BThe bank receives $30,000 to satisfy the debt and the remaining $70,000 goes to the beneficiary
• CThe full $100,000 death benefit is paid to the beneficiary, who must then repay the bank
• DThe insurer divides the proceeds equally between the bank and the named beneficiary