Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jim purchased a new car because he and his wife just found out they were having twins. Jim then stopped at his insurance agent's office

image text in transcribed
image text in transcribed
Jim purchased a new car because he and his wife just found out they were having twins. Jim then stopped at his insurance agent's office to buy additional life insurance. Jim filled out the application, which the agent was going to send into the home office for underwriting the next day, and paid the agent the first annual premium. The agent gave Jim a conditional receipt. If Jim dies later that day, will his wife receive the life insurance proceeds? Yes, the application with payment is a valid offer and the conditional receipt represents acceptance of the offer. No, the insurance company will never pay unless the insured person dies after the policy has been issued. No, since Jim was buying the policy on his own life his wife does not have an insurable interest. Yes, but only if Jim meets the insurance company's underwriting standards and would have been approved for a policy had he not died. Jim purchased a new car because he and his wife just found out they were having twins. Jim then stopped at his insurance agent's office to buy additional life insurance. Jim filled out the application, which the agent was going to send into the home office for underwriting the next day, and paid the agent the first annual premium. The agent gave Jim a conditional receipt. If Jim dies later that day, will his wife receive the life insurance proceeds? Yes, the application with payment is a valid offer and the conditional receipt represents acceptance of the offer. No, the insurance company will never pay unless the insured person dies after the policy has been issued No, since Jim was buying the policy on his own life his wife does not have an insurable interest. Yes, but only if Jim meets the insurance company's underwriting standards and would have been approved for a policy had he not died

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Outsourced Functions Risk Management In An Outsourced World

Authors: Mark Salamasick

1st Edition

0894137255, 9780894137259

More Books

Students also viewed these Accounting questions