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State RegulationsOH specificDifficulty 2/5

The primary beneficiary of an Ohio life policy dies before the insured, who never named a contingent beneficiary and never updated the designation. How are the death proceeds handled?

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

When the primary beneficiary predeceases the insured and no contingent beneficiary was named, the policy's succession provision controls: the benefit typically passes to the insured's estate. Ohio's beneficiary framework (ORC 3911.09 and companion sections) supports payment under the designation and policy terms rather than to a third party's heirs.

Why the other options are wrong

  • A) The predeceased beneficiary's own heirs have no claim; the beneficiary's right lapsed at that beneficiary's death.
  • C) The proceeds are not unclaimed property; they have a designated taker under the policy's succession clause.
  • D) Children take only if named or if a per stirpes class or succession clause includes them.

Memory hook

No backup, no beneficiary - the check goes to the estate.

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