Under Pennsylvania Life Insurance beneficiary designations,per capitadistribution means that proceeds are dividedequally among the surviving named beneficiariesat the time of the insured’s death. If a beneficiary predeceases the insured, that beneficiary’s share isnot passed down to heirs or descendants. Instead, the deceased beneficiary’s share is reallocated among the remaining living beneficiaries.

In this scenario, the insured named four children as beneficiaries in equal shares of a $60,000 policy. One child died before the insured, leaving three surviving children at the time of death. Because the designation is per capita, only theliving beneficiariesare entitled to the proceeds. The deceased child’s children (the insured’s grandchildren) receiveno portionof the benefit under per capita distribution.

The total policy proceeds of $60,000 are divided equally among the three surviving children. Each receives $20,000. If the insured had selectedper stirpes, the deceased child’s share would have passed to their children. However, Pennsylvania insurance study materials clearly distinguish per capita as distribution byheadcount of living beneficiaries, not by family line.

Therefore, option D is correct.