Under what circumstances will a contingent beneficiary be entitled to proceeds from a life insurance...

Definition of beneficiaries in life insurance.

A primary beneficiary is first in line to receive policy proceeds.

A contingent beneficiary receives proceeds only if the primary beneficiary cannot.

Apply the rule.

Under Maryland life insurance principles, the contingent beneficiary’s rights arise only if the primary beneficiary dies before the insured or is otherwise legally unable to receive proceeds.

Evaluate each option.

A. After proceeds are paid to the primary beneficiary

Incorrect. Once paid, proceeds are exhausted.

B. After debts are settled

Incorrect. Beneficiary rights are independent of estate debts.

C. If the primary beneficiary has predeceased the insured

Correct. This is the precise condition triggering contingent beneficiary rights.

D. If the contingent beneficiary is a child

Incorrect. Relationship alone does not determine entitlement.

Conclusion.

A contingent beneficiary is entitled to proceeds only if the primary beneficiary predeceases the insured.