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.
In this scenario, since R's spouse survived R by only ten days, the Common Disaster provision dictates that the benefits from R's life policy will be paid to R's next of kin rather than the spouse or their estate. This ensures that the intended beneficiaries are prioritized appropriately according to the terms of the policy.
A) insured's next of kin
This option is correct because the Common Disaster provision typically stipulates that if both the insured and the beneficiary die in a common disaster, the benefits will go to the insured's next of kin if the beneficiary does not survive the insured for a specified period, which is ten days in this case.
B) spouse's heirs
This option is incorrect. The policy's Common Disaster provision specifically outlines that the benefits do not go to the spouse's heirs if the spouse does not survive the insured for the required duration. Instead, the next of kin of the insured are prioritized.
C) insured's estate
This option is incorrect. Benefits are not automatically paid to the insured's estate if a designated beneficiary is in place. Since the spouse did not survive R by the necessary time frame, the benefits bypass the estate and go directly to the next of kin.
D) spouse's estate
This option is incorrect as well. Similar to option C, the benefits do not transfer to the spouse’s estate because the spouse did not outlive the insured. The policy's provision favors the insured's next of kin.
Conclusion
The correct answer is definitively A, as the Common Disaster provision is designed to protect the intended beneficiaries of the policy by directing benefits to the insured's next of kin when the designated beneficiary does not survive. All other options fail to align with the policy's stipulations, making A the only viable choice in this situation.