Jada owned an insurance policy on her life,on which she paid all the premiums.Shaun was named the beneficiary.Jada died and the insurance company refused to pay the insurance proceeds to Shaun.An action by Shaun against the insurance company for the insurance proceeds will be:

A) successful because Shaun is a third-party donee beneficiary.
B) successful because Shaun is a proper assignee of Jada's rights.
C) unsuccessful because Shaun is not the owner of the policy.
D) unsuccessful because Shaun did not pay any of the premiums.

Question

Adzimah Mahmud · Accepted Answer

Final Answer : A, Explanation :  If the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to a third party,that third party is classified as a donee beneficiary.Shaun is explicitly named as the intended beneficiary of the policy and therefore,has the right to claim the insurance amount.

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