How is the primary beneficiary treated under the Common Disaster Clause if they outlive the insured by 60 days?

The correct choice indicates that the primary beneficiary receives the full benefit under the Common Disaster Clause if they outlive the insured by 60 days. This clause is designed to address situations where a primary beneficiary and the insured may die in a common disaster, leading to ambiguity about who outlived whom.

In cases governed by this clause, if the primary beneficiary survives the insured by a specified period, commonly 30 or 60 days, this ensures that the intent of the insured is honored. The principle is that if the primary beneficiary is alive after the designated survival period, they are awarded the policy's death benefit in full. This protects the financial intentions of the insured and provides clarity regarding the distribution of benefits.

The other options are inconsistent with the intent of the Common Disaster Clause. For instance, if the beneficiary receives nothing, or inherits partially, this would contradict the purpose of ensuring that the beneficiary is rewarded for surviving the insured. The possibility of contesting a will does not apply to life insurance policies, which operate under contract law rather than estate law. Therefore, the full benefit is the logical and fair outcome when the primary beneficiary meets the survival requirement specified in the clause.