Life Insurance Policy Provisions, Options, and Riders
What problem is the common disaster clause written to solve?
Answer and explanation
Answer: C. The clause addresses deaths in a common accident where it cannot be shown who survived whom, and it presumes the beneficiary died first so the proceeds pass as the insured intended. Unrelated deaths, later deaths under a settlement option and a missing beneficiary are handled by other provisions.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, common disaster clause
More life insurance policy provisions, options, and riders questions
- What is the role of a tertiary beneficiary in the succession of beneficiaries?
- What may an insurer promise about the dividends on a participating policy?
- What need does a children's term rider chiefly meet?
- What notice does section 3230 require in the application for a policy providing accelerated death benefits?
- What problem does the entire contract provision address?
- What restriction applies to an owner who names an irrevocable beneficiary?
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