Final answer:
The Common Disaster Clause covers scenarios in which both insured and beneficiary die from the same event, dictating the succession of estate to contingent beneficiaries.
Step-by-step explanation:
The Common Disaster Clause is an aspect of estate planning, often included in life insurance policies and wills, to address the issue wherein both the insured and beneficiary die in a close time frame due to a common event. The intent of the Uniform Simultaneous Death Act, which includes this clause, is to determine the succession of estate as if the insured survived the beneficiary.
This ensures that the estate is transferred according to the insured's alternate provisions, typically to the contingent beneficiaries, rather than passing directly to the beneficiary's estate. It's important to consult with a legal expert to understand how such provisions may apply in individual cases and how they may interact with state laws.