Who is responsible for paying the policyholder's designated beneficiary?

The insurer is responsible for paying the policyholder's designated beneficiary upon the occurrence of an event covered by the insurance policy, such as the insured's death in life insurance policies. This obligation arises from the contractual agreement between the insurer and the policyholder, which stipulates that the insurer will provide a benefit to the beneficiary designated by the policyholder in exchange for the premium payments made by the policyholder.

The insurer has the duty to ensure that claims are processed and paid in a timely manner once a valid claim is filed. The policyholder, while they initiate the contract and select a beneficiary, does not fulfill the role of paying the benefit directly; their responsibility lies in maintaining the insurance policy and keeping it active. Similarly, the broker acts as an intermediary in the process, facilitating the purchase of insurance but not being directly responsible for claims payment. The state does not typically have a role in claim payments unless there are specific statutory regulations or insolvency issues involving the insurer. Thus, the clear obligation to fulfill the financial responsibility to the beneficiary rests with the insurer.