Under the Common Disaster provision, if both the insured and beneficiary die in an accident, who receives the proceeds?

The Common Disaster provision is designed to address situations where both the insured and the beneficiary die simultaneously due to an accident, which can complicate the distribution of the insurance proceeds. In such cases, the provision typically stipulates that if the beneficiary dies at the same time as the insured, the proceeds will not go directly to them but rather to their estate. This ensures that the funds are handled according to the beneficiary's will or state laws regarding intestacy, rather than being left in limbo or reverted to the insured's estate.

This mechanism is important as it prevents a scenario where the insurance proceeds could be distributed to someone who has died before the insured. Instead, it provides a clear path for the funds to go to the rightful heirs of the beneficiary’s estate, who are then responsible for distributing the assets according to the law or the designated wishes expressed in the beneficiary's will.

The other responses do not apply in the context of the Common Disaster provision because they either suggest that the proceeds should go directly to individuals who may have predeceased the insured or imply distribution methods that do not align with the provisions set forth in the policy.