New York State Life Insurance Exam Questions Practice Question
At the time of an insured's death, a per capita distribution of policy proceeds are paid to
Correct Answer: D
Rationale: In a per capita distribution, policy proceeds are divided equally among the named living primary beneficiaries. This ensures that each beneficiary receives an equal share, reflecting the intent of the insured to provide for specific individuals.
Option A is incorrect because proceeds do not go to the estate unless there are no living beneficiaries. Option B is not applicable here, as per capita distribution does not automatically transfer benefits to the children of a deceased primary beneficiary; that scenario would apply to per stirpes distribution instead. Option C is misleading; while it mentions equal installments, it incorrectly includes contingent beneficiaries, who only receive benefits if no primary beneficiaries are alive.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now