What is the effect of the common disaster provision when both the insured and beneficiary die in the same accident?

• A. The insured outlived the beneficiary
• B. The policy is void
• C. The insured outlived the beneficiary
• D. The payout is doubled

Answer: (C)

In a common disaster situation, the order of death between the insured and the beneficiary is clarified to avoid ambiguity in payout. The provision presumes that the insured outlived the beneficiary, meaning, if both die in the same accident and there’s no clear proof of who died first, the insurer treats it as though the insured survived the disaster relative to the beneficiary. This ensures the death benefit is paid to the next appropriate beneficiary (such as a contingent beneficiary or the insured’s estate if no one else is named), rather than creating competing claims or voiding the policy. It’s not about voiding the policy or doubling the payout—the effect is about establishing a clear path for the benefit when both parties die in the same event.