Daniel took out property insurance for his vacation home. The property is valued at $500,000, but he paid for coverage of $650,000 "just in case." The house is destroyed through no fault of his own and the type of damage is covered under his insurance contract. How will the insurance company handle his claim?

Select one:

a.

The insurance company will pay him $500,000 because that is what the property is worth.

b.

The insurance company will pay him $500,000 plus reimbursement of that part of Daniel's insurance premium he was paying for the additional $150,000 in coverage that is not being paid out.

c.

The insurance company will not pay Daniel. The contract is void because Daniel misled the insurance company by taking out a $650,000 policy on property that was only worth $500,000.

Under which of the following does the insurer promise to pay the insured a specified amount for the rest of his life, beginning at a later date?

Select one:

a.

whole life policy

b.

universal life policy

c.

deferred annuity contract