81. Which of the following is an example of a beneficiary designation by class?
Answer: A
All children of the insured
An example of a beneficiary designation by class is "All children of the insured." This designation encompasses a group rather than naming specific individuals, which is characteristic of class designations.
A) All children of the insured
This option is correct because it designates a class of beneficiaries, specifically all children of the insured, without identifying individual names. This means that any child born to or legally adopted by the insured will automatically be included as a beneficiary, illustrating the concept of class designations effectively.
B) A specified parent of the insured
This option is incorrect as it identifies a specific individual, rather than a group. A beneficiary designation should encompass multiple individuals to qualify as a class, and naming one specific parent does not meet that criterion.
C) A named shareholder of a corporation
This option is incorrect because it refers to a specific individual rather than a class. A named shareholder is a particular entity with a defined role, which does not align with the generality needed for a class designation.
D) The estate of the insured
This option is also incorrect since it refers to a legal entity rather than a class of individuals. While it is a valid form of beneficiary designation, it does not represent a class designation as it does not include multiple beneficiaries.
Conclusion
The correct answer, "All children of the insured," exemplifies a beneficiary designation by class as it includes all children collectively. In contrast, the other options fail to meet this definition by either specifying individuals or representing entities rather than a group. Thus, option A is the only choice that accurately reflects the concept of class designation in beneficiary terms.