Laekyn purchased an individual disability insurance policy 3 years ago from Awah, her insurance agent. Today, Awah receives a call from Laekyn, who says she is hospitalised following a suicide attempt. Laekyn says her doctor diagnosed her with bipolar disorder and expects she will be able to return to work in 3 months. Will Awah be able to help Laekyn receive disability benefits? Select one correct answer from the list 1. Yes, because the event occurred more than 2 years after the policy was purchased. 2. Yes, because Laekyn contacted her as soon as she received her diagnosis. 3. No, because the minimum waiting period on an individual disability policy is 90 days. 4. No, because she is disabled due to a suicide attempt. ΟΟΟΟ Dominic suffers a heart attack on October 1 and dies a little over a month later, on November 7. At the time of his death, he owned a $150,000 critical illness (CI) insurance policy, purchased 10 years earlier. Dominic never failed to pay the $100 monthly premium. When he died, the insurer had not yet issued the benefit payment. How will the CI benefit be treated? Select one correct answer from the list 1 2 It will not be paid. It will be paid to Dominic's next of kin. 3. It will be payable to Dominic's estate. 4. Dominic's estate will receive a return of premiums. 0 0 0 0
Laekyn purchased an individual disability insurance policy 3 years ago from Awah, her insurance agent. Today, Awah receives a call from Laekyn, who says she is hospitalised following a suicide attempt. Laekyn says her doctor diagnosed her with bipolar disorder and expects she will be able to return to work in 3 months. Will Awah be able to help Laekyn receive disability benefits? Select one correct answer from the list 1. Yes, because the event occurred more than 2 years after the policy was purchased. 2. Yes, because Laekyn contacted her as soon as she received her diagnosis. 3. No, because the minimum waiting period on an individual disability policy is 90 days. 4. No, because she is disabled due to a suicide attempt. ΟΟΟΟ Dominic suffers a heart attack on October 1 and dies a little over a month later, on November 7. At the time of his death, he owned a $150,000 critical illness (CI) insurance policy, purchased 10 years earlier. Dominic never failed to pay the $100 monthly premium. When he died, the insurer had not yet issued the benefit payment. How will the CI benefit be treated? Select one correct answer from the list 1 2 It will not be paid. It will be paid to Dominic's next of kin. 3. It will be payable to Dominic's estate. 4. Dominic's estate will receive a return of premiums. 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
11
Transcribed Image Text:Laekyn purchased an individual disability insurance policy 3 years ago from Awah, her insurance agent.
Today, Awah receives a call from Laekyn, who says she is hospitalised following a suicide attempt.
Laekyn says her doctor diagnosed her with bipolar disorder and expects she will be able to return to
work in 3 months. Will Awah be able to help Laekyn receive disability benefits?
Select one correct answer from the list
1.
Yes, because the event occurred more than 2 years after the policy was purchased.
2. Yes, because Laekyn contacted her as soon as she received her diagnosis.
3. No, because the minimum waiting period on an individual disability policy is 90 days.
4. No, because she is disabled due to a suicide attempt.
ΟΟΟΟ
Transcribed Image Text:Dominic suffers a heart attack on October 1 and dies a little over a month later, on November 7. At the
time of his death, he owned a $150,000 critical illness (CI) insurance policy, purchased 10 years earlier.
Dominic never failed to pay the $100 monthly premium. When he died, the insurer had not yet issued
the benefit payment.
How will the CI benefit be treated?
Select one correct answer from the list
1
2
It will not be paid.
It will be paid to Dominic's next of kin.
3.
It will be payable to Dominic's estate.
4. Dominic's estate will receive a return of premiums.
0 0 0 0
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