Payment to the policyowner's own broker is deemed to be

• A. payment to an authorized agent
• B. payment to no one
• C. payment to the insurer
• D. constructive payment

Answer: (B)

In life insurance practice, premium payments are considered made only when the insurer or an authorized agent of the insurer actually receives the funds. A policyowner’s own broker, if not designated by the insurer as an authorized agent to collect premiums, is not a recipient who can discharge the obligation. So money paid to that broker does not count as payment to the insurer, or as constructive payment through a proper channel. Until the insurer receives the funds, the premium is effectively unpaid, which is why this scenario is treated as payment to no one. If the broker were an authorized agent of the insurer, or if funds were delivered through a recognized channel to the insurer, then payment would be to the insurer or via constructive payment.