State RegulationsAZ specificDifficulty 3/5
An insured in Scottsdale named a spouse as sole beneficiary; the spouse died before the insured and no contingent beneficiary was designated. Under A.R.S. 20-1215, where do the proceeds go?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-1215 pays proceeds per the beneficiary designation; when the sole named beneficiary did not survive the insured and no contingent designation exists, no valid designation remains, so the proceeds are payable to the insured's estate.
Why the other options are wrong
- A) The deceased spouse's designation lapsed; that spouse's heirs take nothing under this policy.
- B) Children take only if designated; there is no automatic family payout.
- C) Producers have no role in receiving or distributing claim proceeds.
Memory hook
Beneficiary dies first, no backup - estate gets paid.