Kelly, age 29, recently purchased a $500,000 ordinary 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 insurer's obligations, if any, to Kelly or to Kelly's beneficiary. Identify the appropriate policy provision or rider that applies in each case. Treat each event separately.

11. Kelly fails to pay the second annual premium due on January 1. She dies 15 days later.

12. Kelly committed suicide three years after the policy was purchased.

13. At Kelly's death, the life insurer discovered that Kelly deliberately lied about her age. Instead of being 29 years old, as she indicated, she was actually 31 years old at the time the policy was purchased.

14. Two years after the policy was purchased, Kelly was told she has breast cancer. She is uninsurable but would like to get additional life insurance.

15. Kelly is seriously injured in an auto accident. After six months, she is still unable to return to work. She has no income from her job and the insurance premium payments are financially burdensome.

16. Kelly wants to retire and does not wish to pay the premium on her policy. Indicate the various options that are available to her.

17. Ten years after the policy was purchased, Kelly is laid off from her job. She is unemployed and is in desperate need of cash.

18. When Kelly applied for life insurance, she concealed the fact that she had a heart problem. She died five years later.