Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Doright's mother is a(n):
A) incidental beneficiary.
B) creditor beneficiary.
C) donee beneficiary.
D) assignee.

Question

Quizplus · Accepted Answer

Professor Doright's mother is a donee beneficiary because she is receiving the insurance proceeds as a gift upon his death, without providing any consideration or having a direct contractual obligation with the insurance company.

Professor Doright Has a Life Insurance Policy on His Own