Benefi ciary Benefi ts Franken, a college student, recognized that she was fi nancially very dependent upon her widowed mother’s fi nancial support while she was in college.

To protect against the risk of fi nancial loss in the event of her mother’s death, Franken persuaded her mother to take out an insurance policy naming her as the benefi ciary.

a. Is Franken an incidental benefi ciary?

b. Is Franken a third-party benefi ciary?

c. In the event of the mother’s death, would Franken’s college be deemed to be a third-party benefi ciary?

Study each of the cases below. Answer the questions that follow by writing Yes or No i n the answer column.