K is the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Question

Grant Gill

Business

5 July, 14:22

K is the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

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Sara Whitney · Answer 1

Proceeds will be paid to P's estate

Explanation:

Common-disaster provision can be seen as a provision that occured in a situation where the insured person and the primary beneficiary of the person, die in the same car accident, the secondary beneficiary will therefore be entitled to the benefits.

Hence, Under the Common Disaster provision, the Proceeds will be paid to P's estate because K is the insured and P is the sole beneficiary on a life insurance policy in which both of the two parties are involved in a fatal accident and K dies before P.