What clause stipulates that if an insured and the primary beneficiary die as a result of the same incident, the benefits will be paid as if the primary beneficiary had died first?

A. Common Disaster Clause
B. Spendthrift Clause
C. Nonforfeiture Clause
D. Settlement Clause

Question

15-07-2024
Business

Answered

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What clause stipulates that if an insured and the primary beneficiary die as a result of the same incident, the benefits will be paid as if the primary beneficiary had died first?

A. Common Disaster Clause
B. Spendthrift Clause
C. Nonforfeiture Clause
D. Settlement Clause

Sagot :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-15T17:27:39-04:00

Final answer:

The Common Disaster Clause ensures proper benefit distribution in case of simultaneous deaths of the insured and primary beneficiary.

Explanation:

The clause that stipulates if an insured and the primary beneficiary die as a result of the same incident, the benefits will be paid as if the primary beneficiary had died first is the Common Disaster Clause. This clause ensures that the benefits are distributed correctly in case of simultaneous deaths.

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