Then he can be passed over as president and still serve as vp. Is that correct?
No.
In order to serve as VP you must be eligible to be president.
Whereas John Sidney McCain, III, was born to American citizens on an American military base in the Panama Canal Zone in 1936: Now, therefore, be it
Resolved, That John Sidney McCain, III, is a `natural born Citizen’ under Article II, Section 1, of the Constitution of the United States.
I don’t know the answer to that question. Is not the VP positioned to take over for the POTUS in the event the latter cannot fulfill his or her duties?