Life Policy ProvisionsQuestion 168 of 716
A policyowner names his three adult children equally as primary beneficiaries 'per stirpes.' One child predeceases the insured, leaving two grandchildren. How are the proceeds distributed at the insured's death?
a.Each surviving child and each grandchild receives an equal one-fourth share of the proceeds
b.The two surviving children divide the entire proceeds equally, taking one-half of the benefit each
c.The estate of the deceased child receives that child's full one-third share, to be distributed under the will
d.Each surviving child receives one-third; the deceased child's share is split between the two grandchildren
Explanation
Per stirpes (by branch) distribution sends a deceased beneficiary's share down to that beneficiary's descendants. Each surviving child still receives one-third; the predeceased child's one-third share is divided equally between his or her two children (each grandchild gets one-sixth).
Law Reference: Cal. Ins. Code §10130This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)