Who controls the payable proceeds of a life insurance policy when no designated beneficiary exists?

• A. The insured's will
• B. The intestacy laws
• C. The contractual provision in the policy resolving the issue
• D. The insured's personal representative

Answer: (C)

When no beneficiary is named, the policy itself provides a default rule for who gets paid and how. This contractual provision is the authority that resolves the issue and directs the payout, so the proceeds follow the path laid out in the policy. The insured’s will or intestacy laws don’t govern the payment at the moment of claim; they come into play later in estate administration if the policy proceeds are paid to the estate. The insured’s personal representative would handle the estate, but the controlling decision on who receives the policy money when no beneficiary exists is dictated by the policy’s own default provision.