State RegulationsOH specificDifficulty 2/5
A Cleveland parent names her 9-year-old son as the sole beneficiary of her life policy. If she dies while he is still a minor, what claims-payment complication does this create?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Ohio law permits a minor to be named as a beneficiary (ORC 3911.09 and companion provisions), but a minor lacks the legal capacity to execute a valid claim release. The insurer will therefore require a guardian of the estate, a custodian under a uniform transfers arrangement, or a court-supervised payment before releasing the funds.
Why the other options are wrong
- A) Nothing is forfeited; the child's right to the proceeds is intact, but the payment mechanics protect the minor's funds.
- B) A producer has no role as custodian of claim proceeds; payment must go through a legally recognized guardian or custodian.
- D) The insurer does not simply hold funds interest-free; it follows the guardianship or custodian mechanism instead.
Memory hook
Minor beneficiary can't sign - send a guardian or custodian first.