Common disaster clause and simultaneous death
When the insured and the primary beneficiary die in the same accident and the order of death cannot be proven, simultaneous death rules and common disaster clauses treat the beneficiary as having died first. The proceeds go to the contingent beneficiary, or to the insured's estate if none is named.
Key facts for the exam
- Simultaneous death laws presume the primary beneficiary died before the insured, steering the proceeds away from the beneficiary's estate.
- With a common disaster clause, the contingent beneficiary takes. Only where no contingent beneficiary is named do the proceeds fall into the insured's estate.
- The Uniform Simultaneous Death Act uses a default 120-hour survival rule for simultaneous or rapidly successive deaths.
- A survivorship clause requires the beneficiary to outlive the insured by a stated period, commonly 15 to 60 days, before the designation takes effect.
- Naming a contingent beneficiary as well as a primary one gives the proceeds a destination when the primary does not survive.
The trap. The proceeds do not go to the primary beneficiary's estate. Without a contingent beneficiary they fall into the insured's estate, so name one.
How the exam asks about it
- Under the Uniform Simultaneous Death Act, if the insured and primary beneficiary die in a common accident and evidence cannot prove who died first, how are proceeds distributed?
- An insured and the primary beneficiary die in the same accident and the common disaster clause applies. Where do the proceeds go?
- An insured and beneficiary die in quick succession, and the policy does not supply a different survival rule. What issue does a simultaneous-death rule resolve?
- How does a survivorship clause in a common disaster provision operate?
- A governing beneficiary instrument expressly states how to distribute proceeds after simultaneous deaths. How does that fact affect Texas's default survival rules?
- What practical step reduces the risk that a common disaster leaves proceeds without an intended recipient?
Where it sits on your state's exam
| State exam | Share of exam | ≈ Scored questions | Outline section |
|---|---|---|---|
| Texas | 19% | 15 of 80 | Policy Riders, Provisions, Options, and Exclusions |
| Florida | 18% | 15 of 85 | Policy Riders, Provisions, Options, and Exclusions |
| Georgia | 19% | 15 of 80 | Policy Riders, Provisions, Options, and Exclusions |
| New York | 20% | 20 of 100 | Life Insurance Policy Provisions, Options, and Riders |