Common Disaster Clause: In case of ambiguous who dies first, who is presumed to have survived?

Common Disaster Clause: In case of ambiguous who dies first, who is presumed to have survived?

• A. The primary beneficiary.
• B. The insured.
• C. The contingent beneficiary.
• D. The insurer.

Answer: (B)

Common disaster clause handles what happens when the insured and the named beneficiary die in the same event and we can’t tell who died first. The standard rule is that the insured is presumed to have survived. In other words, for purposes of the policy, the beneficiary is treated as having died before the insured. This default keeps the death benefit flowing to the next in line (the contingent beneficiary, if there is one) or, if there isn’t one, to the insured’s estate, rather than leaving the benefit in limbo due to the unknown order of death.

Common disaster clause handles what happens when the insured and the named beneficiary die in the same event and we can’t tell who died first. The standard rule is that the insured is presumed to have survived. In other words, for purposes of the policy, the beneficiary is treated as having died before the insured. This default keeps the death benefit flowing to the next in line (the contingent beneficiary, if there is one) or, if there isn’t one, to the insured’s estate, rather than leaving the benefit in limbo due to the unknown order of death.