Life License Qualification Program (LLQP) Practice Exam

If a business partner named as a primary beneficiary dies and the partnership has dissolved, the proceeds will typically go to the surviving partner. This scenario often arises because the surviving partner is typically entitled to any benefits or payments related to the partnership's dissolution.

In the context of life insurance, if the deceased partner had named the partnership as a beneficiary or the policy was designed to cover partnership obligations, the proceeds would directly benefit the surviving partner. The intention behind such arrangements is to ensure that the surviving partner is compensated for any loss incurred due to the death of their business associate, which can be essential for maintaining financial stability or covering any partnership debts or obligations.

The other options, while potentially relevant in different contexts, do not align with the standard practices regarding the distribution of proceeds in this situation. For instance, if the partnership is dissolved, it no longer exists as an entity to receive funds. The deceased partner's family or estate might have other claims depending on the specifics of the agreement, but the primary beneficiary designation gives precedence to the surviving partner in terms of direct proceeds from insurance or partnership agreements.