On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co. She named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first year's premium on making the application. Two days later, before she had a chance to take the physical examination required by the insurance company and before the policy was issued, Joleen was killed in an automobile accident. Jay submitted a claim to the insurance company for $50,000. Can Jay collect? Explain.

Question

Lila Rose

Business

18 April, 23:40

On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co. She named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first year's premium on making the application. Two days later, before she had a chance to take the physical examination required by the insurance company and before the policy was issued, Joleen was killed in an automobile accident. Jay submitted a claim to the insurance company for $50,000. Can Jay collect? Explain.

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Answers (1)

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Henderson · Answer 1

Yes

Explanation:

Jay who happens to be the husband have claim to the insurance due to the fact that he has been identified as the beneficiary.

Also, Joleen Vora had applied and paid for the first premium however, the policy have not been issued due to the fact that she had not completed the documentation process.

The process can therefore be termed inconclusive so Jay who is the beneficiary can collect the claim.