Under the common disaster provision, when the insured and the beneficiary die in the same accident, the insurer will continue as if

• A. the beneficiary outlived the insured
• B. both died in the event with no payout
• C. the insured outlived the beneficiary
• D. the policy is void

Answer: (C)

The main concept here is how the common disaster provision resolves a situation where both the insured and the beneficiary die in the same accident. To avoid a payout being denied simply because death occurred in the same event, the provision treats the insured as having outlived the beneficiary for purposes of the policy. This assumption allows the death benefit to be paid as if the insured survived long enough to trigger the proceeds, typically going to the contingent beneficiary or the insured’s estate as the policy directs. In other words, the insurer proceeds with the payout based on the insured being the survivor, so the benefit isn’t blocked by simultaneous deaths.