State RegulationsAZ specificDifficulty 2/5
An insured dies without a beneficiary designation in force under an individual health policy. Under A.R.S. 20-1353, to whom are the remaining benefits payable?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under A.R.S. 20-1353, benefits are payable according to the beneficiary designation; absent a designation, they are payable to the insured's estate. Routing the proceeds to the estate keeps them within the probate process, where lawful creditors and heirs can be dealt with, rather than leaving payment to the insurer's discretion.
Why the other options are wrong
- A) The insurer has no ownership claim to the benefits; the statute directs them to the estate.
- B) Unclaimed-property escheat applies only after statutory procedures run their course, not directly at claim time.
- C) A.R.S. 20-1353 gives the attending physician no payment right; payment follows designation or the estate.
Memory hook
No name on the paper — the estate steps in.