36. A common disaster clause in a life insurance policy would apply if
Answer: A
A common disaster clause in a life insurance policy would apply if the insured and the primary beneficiary were killed in the same accident.
The common disaster clause in a life insurance policy is designed to address situations where the insured and the primary beneficiary die in the same event, typically an accident. In such cases, the clause ensures that the benefits are distributed according to the terms set forth in the policy, often favoring contingent beneficiaries.
A) the insured and the primary beneficiary were killed in the same accident
This option is correct because the common disaster clause specifically addresses scenarios where the insured and the primary beneficiary perish together in an accident. This clause is crucial in determining how the death benefit is allocated when both individuals have died simultaneously.
B) the insured and the contingent beneficiary die before the primary beneficiary
This option is incorrect as the common disaster clause does not pertain to the order of death between the insured and contingent beneficiaries. The clause is focused on the scenario where the insured and the primary beneficiary die together, not on the sequence of deaths involving the contingent beneficiary.
C) there is no contingent beneficiary
This option is incorrect because the existence or absence of a contingent beneficiary does not trigger the common disaster clause. The clause specifically relates to the simultaneous death of the insured and the primary beneficiary, regardless of whether a contingent beneficiary is named.
D) there is no primary beneficiary
This option is also incorrect, as the common disaster clause is not applicable in situations where there is no primary beneficiary. The clause's purpose is to clarify the distribution of benefits when both the insured and the primary beneficiary die together, which cannot occur if there is no primary beneficiary to begin with.
Conclusion
The correct answer is option A, as the common disaster clause is specifically intended to resolve issues arising when both the insured and the primary beneficiary die in the same accident. Options B, C, and D fail to address the primary context of the clause, which revolves around the simultaneous deaths of the insured and the primary beneficiary, thereby making them irrelevant to this particular question.