West Virginia State Life Insurance Practice Exam

In a scenario where P is the primary beneficiary and Q's sister R is the contingent, who will receive Accidental Death benefits if Q and R die instantly in an accident?

1. P only

2. Q's estate

3. R's estate

4. Both P and R equally

The correct answer is: P only

In this scenario, P is designated as the primary beneficiary and R is the contingent beneficiary. In insurance terms, a primary beneficiary has first claim to the benefits upon the death of the insured, while a contingent beneficiary only receives benefits if the primary beneficiary is unable to do so. Since both Q and R die in the same accident, the situation is assessed based on who survives. Because R was the contingent beneficiary, she would only be eligible for benefits if the primary beneficiary, P, were to also be deceased. However, since P is still alive and is the primary beneficiary, P will receive the accidental death benefits regardless of R's status. In summary, P, as the primary beneficiary who survives, is entitled to the accidental death benefits. R, being the contingent beneficiary, does not receive any benefits in this scenario since P is alive. Thus, the correct answer is that P will solely receive those benefits.