Mary, a $53-$year$-$old banking executive has group insurance through her employer. Mary lives alone but supports her elderly mother who also lives alone and has very limited resources. Mary decided five years ago to take out a $10-$year$-$term single life insurance policy from her friend who was an insurance broker.

Mary had suffered from mild depression for over $10$ years and was prescribed medication. The policy was rated $150\%$ due to her depression. The face amount of the policy was for $$100,000.$ She named her mom as beneficiary, and her favourite charity as secondary beneficiary.

Five years later Mary's mother had been admitted to a long$-$term care facility because of dementia. Mary contacted her broker and requested that her insurance be increased by $$250,000$ so that her mother could continue to receive the financial support she would need in the event of Mary's death.

Another fully underwritten policy, with full disclosure, was approved and issued for $$250,000,$ with Mary's mother as beneficiary and her charity as secondary beneficiary.

One year later Mary's mother passed away. The grief was too overwhelming for Mary and within days of her mother's death, Mary took her own life.

Based on the circumstances, how will the claims be treated on the two life policies?