K is the insured and P is the sole beneficiary of a life insurance policy. If both die in a fatal accident and K dies before P, what happens to the proceeds under the Common Disaster provision?

Under the Common Disaster provision, if the insured (K) dies before the beneficiary (P) in a situation where both die in a common accident, the insurance proceeds are typically paid to the estate of the insured, unless the policy specifies otherwise. This provision is designed to prevent the scenario where the beneficiary could potentially receive the proceeds if they die shortly after the insured, as this would complicate the distribution of the policy's benefits and could potentially exclude the intended heirs.

In this case, if K dies before P but both die in the same accident, the proceeds would indeed be paid to K's estate, which typically aligns with the Common Disaster clause's intention to clarify the distribution of death benefits when there is uncertainty about the order of deaths. This helps maintain the intended flow of benefits according to the policyholder's wishes and prevents disputes in such tragic situations.

The option reflecting that the proceeds will be paid to K's estate if P dies within a specified time correctly outlines this principle. The specific timing mentioned in various policies can vary but often reflects a typical 30 or 60-day timeframe after the insured's death, reinforcing the legality and practice of this provision.