Rhode Island Life Insurance Practice Exam

Who will receive the Accidental Death benefits when P and Q are married, and Q dies in an accident with R as the contingent beneficiary?

1. P only

2. R

3. P and R

4. P and Q's children

The correct answer is: P only

In this scenario, P, who is the primary beneficiary, will receive the Accidental Death benefits upon Q's death in an accident. When the primary beneficiary is alive and eligible, they are prioritized to receive the benefits. Since P and Q are married, P, as the primary beneficiary, is entitled to these benefits upon Q's accidental death. The presence of R as a contingent beneficiary only comes into play if the primary beneficiary, in this case, P, is unable to claim the benefits due to circumstances such as death or the designation being revoked. Since P is alive and is the primary beneficiary, they alone will receive the benefits, making them the sole recipient under the stipulated conditions. This situation illustrates the hierarchy of beneficiaries in life insurance policies, where the primary beneficiary's right to the benefit supersedes that of any contingent beneficiary.