Question 2033 of 287 · Texas Life, Accident and Health Agent Exam

A primary beneficiary and a contingent beneficiary differ in that the contingent beneficiary

Exactly one answer is correct.

Areceives the proceeds only if the primary beneficiary dies before the insured
Bhas the right to change the policy terms
Cmay collect even when the primary beneficiary is living, at the discretion of the company
Dmust be a relative of the insured

Show solution

Correct answer to question 2033

A: receives the proceeds only if the primary beneficiary dies before the insured

Explanation

The contingent beneficiary is the backup. If the primary is alive when the insured dies, the contingent receives nothing.