In the policy described, who are the contingent beneficiaries?

• A. The insurer
• B. John's wife
• C. John's children
• D. John's sister

Answer: (C)

Contingent beneficiaries are the secondary recipients of the death benefit, stepping in if the primary beneficiary cannot receive it. In this policy, the primary beneficiary is assumed to be the other person named, so the contingent beneficiaries are who would receive the proceeds if the primary is unavailable. Here, that next-in-line group is John’s children, so they would receive the payout if the primary cannot collect. The insurer itself isn’t a beneficiary; it’s the company administering the policy. John’s sister would only receive if she were named as the next contingent after the primary, which isn’t the case in this description.