Life Policy ProvisionsQuestion 551 of 716
Under a common disaster (simultaneous death) provision, if the insured and primary beneficiary die in the same accident and the order of death cannot be determined, proceeds are paid as though:
a.The insurer proceeds as though neither the insured nor the primary beneficiary had actually died in the common accident, keeping the policy in force
b.The insurer may retain the proceeds
c.The insured survived the beneficiary, so proceeds go to the contingent beneficiary or the estate
d.The primary beneficiary survived the insured
Explanation
The common disaster clause presumes the insured outlived the beneficiary, so the money flows to the contingent beneficiary (or the estate) rather than into the deceased beneficiary's estate. It never lets the insurer keep the proceeds.
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Related questions on this topic
- If a beneficiary is named irrevocably, the policyowner generally may NOT do which of the following without that beneficiary's consent?
- A death benefit is payable 'per stirpes.' If a primary beneficiary dies before the insured, that beneficiary's share will:
- Under a per capita distribution among named beneficiaries, the proceeds are divided:
- A contingent (secondary) beneficiary receives the death benefit when:
- A common problem with naming a minor child as the direct beneficiary of a life policy is that:
- Naming one's estate as the life insurance beneficiary can be disadvantageous because the proceeds may then be:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)