Pennsylvania Life and Health Insurance Exam Practice Question
If the insured and the primary beneficiary are killed in the same accident, the policy proceeds will be paid to the
Correct Answer: D
Rationale: In the event that both the insured and the primary beneficiary die simultaneously, the policy proceeds typically go to the contingent beneficiary. This ensures that the benefits are distributed according to the insured's wishes, as outlined in the policy.
Option A is incorrect because the estate of the primary beneficiary would not receive the proceeds if they are deceased. Option B is misleading; while insurers may have processes for determining beneficiaries, they follow the hierarchy set in the policy, which prioritizes contingent beneficiaries. Option C is also incorrect unless specifically named as a contingent beneficiary in the policy. Thus, the proceeds go to the contingent beneficiary designated by the insured.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now