65. A common disaster clause states that if the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if the
Answer: A
The insurer will proceed as if the insured individual outlived the beneficiary.
In situations where the beneficiary dies from the same accident as the insured individual, the insurer treats the situation as if the insured individual outlived the beneficiary, allowing the death benefit to be paid according to the terms of the policy.
A) insured individual outlived the beneficiary.
This option is correct because a common disaster clause is designed to prevent complications in the distribution of benefits when both parties die simultaneously. By treating the insured as having outlived the beneficiary, the insurer ensures that the policy proceeds are allocated as intended.
B) beneficiary outlived the insured individual.
This option is incorrect because it contradicts the premise of the common disaster clause. If the beneficiary were deemed to have outlived the insured, it would not align with the purpose of the clause, which is to clarify the benefits distribution when both parties die in the same incident.
C) beneficiary was never named on the policy.
This option is incorrect as it misrepresents the implications of the common disaster clause. The clause specifically addresses scenarios where the beneficiary is named but dies in the same accident, thus rendering this option irrelevant to the situation described.
D) beneficiary and the insured individual died simultaneously.
This option is incorrect because, while it describes the scenario, it does not reflect the outcome dictated by the common disaster clause. The clause provides a resolution by treating the insured as having outlived the beneficiary rather than simply noting their simultaneous deaths.
Conclusion
The correct answer, that the insurer will proceed as if the insured individual outlived the beneficiary, provides clarity in the event of a simultaneous death. All other options either misinterpret the clause's function or present scenarios that do not align with the intended purpose of ensuring a clear and fair distribution of policy benefits.