Common disaster clause effect when both insured and beneficiary die in the same event?

Common disaster clause effect when both insured and beneficiary die in the same event?

• A. The insured outlived the beneficiary
• B. The beneficiary outlived the insured
• C. The policy pays to the contingent beneficiary
• D. No payout

Answer: (B)

The main idea here is how a common disaster clause handles simultaneous deaths. When both the insured and the beneficiary die in the same catastrophe, this clause creates a survivorship presumption to avoid ambiguity about who dies first. The typical result is that the beneficiary is treated as having outlived the insured for the purposes of the policy payout. This ensures the death benefit goes to the named beneficiary (or to their contingent if the beneficiary didn’t survive) rather than automatically going to the insured’s estate. So the correct interpretation is that the beneficiary outlived the insured.

The main idea here is how a common disaster clause handles simultaneous deaths. When both the insured and the beneficiary die in the same catastrophe, this clause creates a survivorship presumption to avoid ambiguity about who dies first. The typical result is that the beneficiary is treated as having outlived the insured for the purposes of the policy payout. This ensures the death benefit goes to the named beneficiary (or to their contingent if the beneficiary didn’t survive) rather than automatically going to the insured’s estate. So the correct interpretation is that the beneficiary outlived the insured.