If a commercial policy's named insured dies, to whom are the rights of the insured transferred?

In the context of commercial insurance policies, when the named insured passes away, the rights and obligations under the policy are transferred to the insured's legal representative. This is an important aspect of how commercial policies operate, ensuring continuity and proper handling of claims and responsibilities associated with the insurance coverage.

The legal representative, often an executor or administrator appointed through the estate planning or probate process, holds the authority to manage the policy and make decisions regarding coverages, claims, and any necessary renewals. This transfer of rights helps maintain the integrity of the insurance agreement and allows for the policy to remain in effect despite the death of the named insured.

Other potential choices, such as the insurance company or the corporate board of directors, do not have the authority to automatically inherit the rights of the policy simply due to the death of the insured. Moreover, while family members may play a supportive role, they do not hold rights to the policy unless they are designated as beneficiaries or legally appointed as representatives. The legal representative is specifically tasked with managing the deceased's affairs, including any insurance policies, which is why this answer is the most appropriate.