Pennsylvania Life and Health Insurance Exam Practice Question
The only beneficiary named in a life insurance policy died before the insured. The policyowner did not name a new beneficiary. When a claim is filed, the death benefit would be paid to the:
Correct Answer: D
Rationale: In this scenario, when the sole beneficiary predeceases the insured and no new beneficiary is designated, the death benefit defaults to the insured's estate. This ensures that the funds are distributed according to the deceased's wishes as outlined in their will or, if there is no will, according to state intestacy laws.
Option A is incorrect because the policyowner is not entitled to the benefit if they are not the insured. Option B is misleading; while the deceased beneficiary's estate may receive funds in some cases, it does not apply here since the insured is still alive. Option C is also incorrect, as the next of kin would not receive the benefit directly without a designated beneficiary.
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