Washington Life Producer Practice Exam

If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if?

1. The beneficiary outlived the insured

2. The insured outlived the beneficiary

3. The death claim is void

4. The policy is canceled

The correct answer is: The insured outlived the beneficiary

When a beneficiary dies in the same accident as the insured individual, the insurer will treat the situation as if the insured outlived the beneficiary. This concept is rooted in the "slayer rule," which posits that a beneficiary who causes or substantially contributes to the death of the insured should not benefit from that death. Therefore, the policy proceeds would be paid to contingent beneficiaries or, in the absence of contingent beneficiaries, to the insured's estate, effectively ensuring that the original intent of the insured to benefit others is upheld. In this case, by considering the insured to have outlived the beneficiary, the insurer protects the intentions of the policyholder and prevents an undesired outcome where a beneficiary stands to gain from a situation where they were also involved in the wrongful act. This approach also complies with legal principles aiming to prevent unjust enrichment in insurance contracts.