Paula and Jim recently applied for life insurance with Shirley, a life insurance agent. For years, Paula and Jim smoked on a regular basis. However, in the last 12 months, they worked hard at quitting but still have the occasional cigarette. When they completed the life insurance applications with Shirley, they answered no to the use of tobacco question. What will the insurer do if Paula or Jim dies? a. Pay a reduced face amount to reflect smoker premium rates b. Pay the face amount provided death occurred after the incontestability period. c. Refuse to pay because the applicants committed fraud. d. Refuse to pay because the applicants failed to pay smoker premium rates.
Paula and Jim recently applied for life insurance with Shirley, a life insurance agent. For years, Paula and Jim smoked on a regular basis. However, in the last 12 months, they worked hard at quitting but still have the occasional cigarette. When they completed the life insurance applications with Shirley, they answered no to the use of tobacco question. What will the insurer do if Paula or Jim dies? a. Pay a reduced face amount to reflect smoker premium rates b. Pay the face amount provided death occurred after the incontestability period. c. Refuse to pay because the applicants committed fraud. d. Refuse to pay because the applicants failed to pay smoker premium rates.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Paula and Jim recently applied for life insurance with Shirley, a life insurance agent. For years, Paula and Jim smoked on a regular basis. However, in the last 12 months, they worked hard at quitting but still have the occasional cigarette. When they completed the life insurance applications with Shirley, they answered no to the use of tobacco question. What will the insurer do if Paula or Jim dies?
a. Pay a reduced face amount to reflect smoker premium rates
b. Pay the face amount provided death occurred after the incontestability period.
c. Refuse to pay because the applicants committed fraud.
d. Refuse to pay because the applicants failed to pay smoker premium rates.
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