A class designation identifies beneficiaries by group description, not by individual names.
Examples include:
“Children of the insured”
“Surviving spouse”
How benefits are paid.
Members of the class who qualify at the insured’s death receive proceeds.
Shares are divided equally unless stated otherwise.
Evaluate each option.
A. Business life insurance
Incorrect. Class designation can be used in personal policies.
B. No primary beneficiary allowed
Incorrect. A class can be a primary beneficiary.
C. Individuals not named
Correct. The class is described, not named individually.
D. Unrelated beneficiaries
Incorrect. Class members are often family.
Maryland relevance.
Maryland recognizes class designations as valid beneficiary arrangements.
Conclusion.
A class designation means beneficiaries are not named individually.
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