Pennsylvania Life and Health Insurance Exam Practice Question
The insured and primary beneficiary were in a car accident. The insured was killed instantly; the beneficiary died 10 days later. Which provision protects the rights of the contingent beneficiary?
Correct Answer: B
Rationale: The **common disaster clause** is designed to address situations where both the insured and the primary beneficiary die in close succession, ensuring that the contingent beneficiary receives the policy benefits if the primary beneficiary does not survive the insured. In this case, since the primary beneficiary died 10 days after the insured, the clause protects the contingent beneficiary's rights.
Option A, the **entire contract**, refers to the complete agreement between the insurer and insured but does not specifically address beneficiary succession. Option C, the **consideration clause**, pertains to the exchange of value in the contract and is unrelated to beneficiary rights. Option D, the **insuring clause**, outlines the insurer's promise to pay upon a covered event but does not address the order of beneficiary claims.
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