In Ray's application for life insurance an applicant failed to complete one part regarding family history. In his statement, the agent described the family as long-lived and healthy. If an insurance company accepts the application in the incomplete form and the applicant for coverage dies young from a cardiac condition that had taken the lives of both his parents before age 50, will the company deny or accept the claim of the beneficiaries?

Question

Savanah Ellis

Business

17 December, 03:27

In Ray's application for life insurance an applicant failed to complete one part regarding family history. In his statement, the agent described the family as long-lived and healthy. If an insurance company accepts the application in the incomplete form and the applicant for coverage dies young from a cardiac condition that had taken the lives of both his parents before age 50, will the company deny or accept the claim of the beneficiaries?

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Schultz · Answer 1

The company will definitely accept the claim of the beneficiaries because upon acceptance of the claim it waived its right to the missing information.

Another reason the company will have to accept the claim is so it does't tarnish the reputation of the company