Business, 20.04.2020 21:56 cmikell124
Pamela applies for a life insurance policy with forever young insurance company. when completing the application form about past surgeries, pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated. one year after issuing the policy, pamela died suddenly from a brain aneurysm. forever young denies payment under the policy based on misrepresentation. if pamela's sister, paula, sues forever young, she will most likely
a. win, because once an application has been accepted, an insurer may not use a misrepresentation on the application to avoid liability.
b. win, because pamela's misrepresentation was not a material fact and did not increase forever young's risk in insuring pamela's life.
c. lose, because pamela's application contained a misrepresentation of material fact.
d. lose, because an insurer can always use any misrepresentation on an application to avoid paying.
Answers: 3
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Pamela applies for a life insurance policy with forever young insurance company. when completing the...
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