The designation of a beneficiary by class in a life insurance policy means that:

What “beneficiary by class” means.

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.