11. Betty, age 30, purchased a $200,000 cash value (permanent) life insurance policy on her life. The waiver-of-premium rider and guaranteed purchase option are attached to the policy. For each of the following situations, indicate the extent of the insurers obligation, if any, to Betty or to Bettys beneficiary. Identify the appropriate policy provision or rider that applies in each case. Treat each event separately. (bullet points acceptable)

1. A year after the policy was purchased, Betty is diagnosed with cancer. She is uninsurable but would like to obtain additional life insurance.

2. Betty commits suicide 6 months after the policy is purchased. Betty lives in Colorado.

3. Betty has run into some financial difficulties. The second annual premium on her policy is due Feb.1, but Betty wont be able to pay the premium until she is paid on Feb.15.

4. At Bettys death, the life insurer discovers that Betty lied about her age when filling out her application. Instead of putting her actual age of 30, Betty indicated she was 29. How does this lie impact her policy?

5. Betty has a deadbeat son who is the beneficiary of her life insurance policy. She wants to make sure he does not spend the entire $200,000 in the first year following her death. Give 2 options available to Betty.

6. Betty wants to retire at 60 and no longer wants to pay the premium on her policy. Explain one option that is available to Betty.

7. Bettys deadbeat son has got his act together and is going to college. Indicate how Bettys insurance policy can help her pay his tuition. How will this action impact her policy?