Which statement is correct concerning a situation in which a beneficiary kills the insured?

Which statement is correct concerning a situation in which a beneficiary kills the insured?

• A. Federal law governs the right to proceeds.
• B. An acquitted beneficiary must be paid.
• C. Proof beyond a reasonable doubt.
• D. The state must file criminal charges against the insurer.

Answer: (C)

The key idea is the slayer rule: a beneficiary who intentionally kills the insured cannot receive the policy proceeds. To apply this rule, there must be a determination of the killer’s guilt, typically through a criminal conviction. That means the insurer will withhold or deny payment until proof beyond a reasonable doubt is established in court. Once guilt is proven, the proceeds don’t go to the killer; they usually go to the insured’s estate or to another eligible beneficiary. This area is governed by state law, not federal law. An acquittal does not authorize payment to the killer, and it’s the state (not the insurer) that pursues criminal charges regarding the death.

The key idea is the slayer rule: a beneficiary who intentionally kills the insured cannot receive the policy proceeds. To apply this rule, there must be a determination of the killer’s guilt, typically through a criminal conviction. That means the insurer will withhold or deny payment until proof beyond a reasonable doubt is established in court. Once guilt is proven, the proceeds don’t go to the killer; they usually go to the insured’s estate or to another eligible beneficiary. This area is governed by state law, not federal law. An acquittal does not authorize payment to the killer, and it’s the state (not the insurer) that pursues criminal charges regarding the death.