New York State Life Insurance Exam Questions 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: B
Rationale: When the only beneficiary named in a life insurance policy passes away before the insured, the death benefit typically reverts to the insured's estate. This is because, without a designated beneficiary, the policy proceeds are treated as part of the insured's assets.
Option A is incorrect as the beneficiary's estate would not receive the benefit since they predeceased the insured. Option C is also incorrect; next of kin only inherit if there are no other designated beneficiaries or estate claims. Option D is wrong, as the policyowner does not automatically receive the benefit unless they are also the insured and no other beneficiaries are named.
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