A policyowner signs a change-of-beneficiary form naming a new beneficiary but dies before submitting the form to the insurer. Who receives the death proceeds?

Why A is correct

A beneficiary change generally takes effect only when the insurer receives and records the change - the form must be delivered to the insurer and the endorsement or recordation completed. A signed but unsubmitted form does not change the designation. Thus the proceeds are paid to the beneficiary of record, subject to possible litigation if another party claims the change was effectively made. This is why insurance professionals advise completing beneficiary changes promptly after major life events and confirming that the insurer has processed the change.

Why the other options are wrong

• B) The new designation was never delivered to the insurer, so it has not been recorded as a valid change and cannot take effect.
• C) The estate receives proceeds only if no living beneficiary is named or all beneficiaries have predeceased the insured. Here a beneficiary of record exists.
• D) The insurer will pay the beneficiary of record. Court intervention is not automatic and occurs only if a competing claim is asserted.

Memory hook

A signed form is not a filed form; the insurer pays whoever is on the books.