Life Policy ProvisionsQuestion 550 of 716
Under a per capita distribution among named beneficiaries, the proceeds are divided:
a.In proportion to each beneficiary's premium contribution
b.Equally among the surviving named beneficiaries at that level
c.Entirely to the oldest surviving beneficiary
d.By family branch, passing to descendants of a deceased beneficiary
Explanation
Per capita ('by the head') splits the proceeds equally among the beneficiaries who are living to receive them. Passing a deceased beneficiary's share to their descendants is per stirpes; age and contribution do not determine the split.
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Related questions on this topic
- A revocable beneficiary designation means the policyowner:
- If a beneficiary is named irrevocably, the policyowner generally may NOT do which of the following without that beneficiary's consent?
- A death benefit is payable 'per stirpes.' If a primary beneficiary dies before the insured, that beneficiary's share will:
- Under a common disaster (simultaneous death) provision, if the insured and primary beneficiary die in the same accident and the order of death cannot be determined, proceeds are paid as though:
- A contingent (secondary) beneficiary receives the death benefit when:
- A common problem with naming a minor child as the direct beneficiary of a life policy is that:
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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)