If both the insured and primary beneficiary die in the same accident and the order cannot be determined, the proceeds may be paid to which option?

• A. The named contingent beneficiary of the insured
• B. The insured's estate
• C. The primary beneficiary's heirs
• D. The insurer

Answer: (A)

When the insured and the primary beneficiary die in the same accident and the order of death can’t be determined, the policy typically directs the payout to the contingent beneficiary named in the contract. This keeps the death benefit with the person the insured designated to receive it if the primary cannot survive or cannot be proven to have survived. It prevents the proceeds from automatically going to the insured’s estate or to the heirs of the primary, which would happen if there were no contingent beneficiary or if the policy defaulted to probate rules. The insurer simply pays out per the policy terms, not to itself, and the contingent beneficiary receives the funds as intended. If no contingent beneficiary is named, the proceeds may instead go to the insured’s estate or follow state law, which is why naming a contingent beneficiary is important.