Question
In: Operations Management
A life insurance policy is an example of an intended beneficiary contract. True or False
A life insurance policy is an example of an intended beneficiary
contract. True or False
Solutions
Expert Solution
Answer: True
Explanation: A life insurance policy always has a nominee or a beneficiary associated to it. The nominee of the life insurance policy receives the death benefits i.e. the insurance proceeds upon the death of the insured. Here, the nominee is referred as the intended beneficiary and the life insurance policy is referred as an intended beneficiary contract. For example, if husband (insured) has taken a life insurance policy, his wife (intended beneficiary) will get the proceeds upon the death of husband.
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