State RegulationsAZ specificDifficulty 1/5
An Arizona life insured dies leaving no valid beneficiary designation in effect. Under A.R.S. 20-1215, the proceeds are payable to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1215 directs payment of death proceeds according to the beneficiary designation, and where no designation is in effect, the proceeds go to the insured's estate. Keeping designations current is what prevents proceeds from being tied up in probate, since the estate route is the default the statute supplies when the paperwork fails.
Why the other options are wrong
- B) the estate route comes first; unclaimed-property handling is not the statutory rule.
- C) the insurer has no discretion to pick relatives outside a valid designation.
- D) producers have no claim on death proceeds.
Memory hook
No beneficiary? The estate inherits.