Question

If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if?

A. the insured outlived the beneficiary
B. the beneficiary outlived the insured
C. both the insured and beneficiary died at the same time
D. the estate was listed as beneficiary

Answer 1

The correct answer is option A. the insured outlived the beneficiary.

Step-by-step explanation:

Regarding the scenario where both the insured individual and the beneficiary die from the same accident, insurance policies will typically proceed as if the insured outlived the beneficiary. This presumption is known as the common disaster provision or simultaneous death clause, which is designed to address the distribution of assets in situations where the insured and the beneficiary die at roughly the same time.

The insurance benefit would therefore typically be paid out to the contingent beneficiary or to the estate of the insured, if no contingent beneficiary is specified.