Asked by theresa betty on Jul 03, 2024

verifed

Verified

Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Doright's mother is a(n) :

A) incidental beneficiary.
B) creditor beneficiary.
C) donee beneficiary.
D) assignee.

Life Insurance

A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.

Proceeds

The amount of money or assets received from a transaction, sale, or event.

Beneficiary

An individual or entity entitled to benefits or proceeds from an insurance policy, trust, will, or other contracts.

  • Distinguish between different types of third-party beneficiaries.
verifed

Verified Answer

SM
Sanja MessamJul 08, 2024
Final Answer :
C
Explanation :
Professor Doright's mother is a donee beneficiary because she is receiving the insurance proceeds as a gift upon his death, without providing any consideration or having a direct contractual obligation with the insurance company.