Homework 4 -Life Insurance Contractual Provisions Chad, age 32, owns an ordinary life insurance policy with face amount of $200,000. The policy pays dividends. The following riders are attached to the policy: additional benefit of $50,000 if death occurs from an accident, and guaranteed purchase option. For each scenario, answer the question that follows. Treat each case separately. (15 points) Chad died from a car accident. a) Will the insurer pay? Circle one: Yes (go to part b)No (go to part c) b) If yes, how much would the insurer pay to Chad's beneficiaries? 1. c) If no, cite the relevant provision and explain why not 2. Chad is seriously injured from an auto collision, 10 years after the policy was issued. After six months, he is still unable to work. He has no income from his job and he is in desperate need of money. Identify one possible way where Chad can obtain cash through his insurance. 3. During the insurance application, Chad accidently told the insurer that he is 30 years old. He died 11 months since the policy became in force (and his true age was revealed at death). a) Will the insurer pay in full? Circle one: Yes (go to part b) b) If yes, cite the provision and explain why No (go to part c) c) If no, cite the provision and explain why not During the insurance application, Chad intentionally lied about his recent visit to a lung center, where he was advised to quit smoking due to serious lung problems that he already has. He died six months after the policy was issued 4