Life Insurance Policy Provisions, Options, and Riders
In the succession of beneficiaries, who receives the death benefit if the primary beneficiary has died before the insured?
Answer and explanation
Answer: A. The contingent, or secondary, beneficiary takes the proceeds when no primary beneficiary survives the insured. The estate becomes the payee only where no named beneficiary survives at all, and the deceased primary beneficiary's heirs take nothing under the policy.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, succession of beneficiaries
More life insurance policy provisions, options, and riders questions
- What role does proof of death play in a New York life claim?
- When an increasing term rider is added to a whole life policy to provide a return-of-premium death benefit, what does the total benefit equal at death?
- When does a spendthrift clause stop protecting proceeds from the beneficiary's creditors?
- Which beneficiary designation generally allows the owner to make a change without the beneficiary's consent?
- Which description best identifies the coverage supplied by a term rider?
- Which need does the fixed-amount option meet better than the fixed-period option?
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