A legal instrument authorizing payment of insurance funds for funeral expenses to a funeral home is known as what?

• A. Beneficiary Designation
• B. Assignment of Proceeds
• C. Proceeds Transfer
• D. Payout Authority

Answer: (B)

Assignment of proceeds explains how insurance funds can be redirected to a specific party, such as a funeral home, to cover funeral expenses. This legal instrument transfers the right to receive the policy proceeds from the insured or beneficiary to the funeral home, allowing the insurer to pay the funds directly to that party for the costs of the funeral. This arrangement ensures the funds are used for their intended purpose and can simplify payment for services rendered.

Beneficiary designation, by contrast, only names who receives the proceeds and does not direct payment to a third party for a specific purpose. The other terms listed aren’t standard instruments for redirecting payment to a funeral home, so they don’t fit this scenario.