84. R is an insured under a life policy in which R's spouse is the designated beneficiary. Both are involved in a car accident that results in R's death. R's spouse survives ten days and then dies. Under the Common Disaster provision in the policy, the benefits will be paid to the:
Answer: A
Benefits will be paid to the insured's next of kin.
Under the Common Disaster provision, when both the insured and the beneficiary die in a common event, the benefits are typically paid to the insured's next of kin if the beneficiary does not survive the insured by a specified period, which is often determined by the policy.
A) insured's next of kin
This option is correct because the Common Disaster provision stipulates that if the beneficiary (in this case, R's spouse) does not survive the insured (R), the life insurance benefits will be directed to the insured's next of kin. This provision aims to ensure that the benefits are distributed to the closest relatives of the insured after a tragic event.
B) spouse's heirs
This option is incorrect because, under the Common Disaster provision, the focus is on the insured's survival rather than the beneficiary's heirs. Since R's spouse did not survive R, the benefits cannot be passed to the spouse's heirs.
C) insured's estate
This option is not correct as the benefits do not automatically go to the insured's estate under the Common Disaster provision. The intent of this provision is to bypass the estate and prioritize the insured's next of kin when the designated beneficiary does not survive.
D) spouse's estate
This option is incorrect because the benefits are intended for the insured's next of kin rather than the spouse's estate. Since R's spouse passed away shortly after R, the benefits cannot be allocated to the spouse's estate.
Conclusion
The correct answer is definitively A, as the Common Disaster provision ensures that if the beneficiary does not survive the insured, the life insurance benefits are paid to the insured's next of kin. Other options fail because they do not align with the policy's intent to protect the interests of the insured's family following a tragic common event.