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When Nora Applied for Life Insurance in 2000 She Reduced

Question 5

Multiple Choice

When Nora applied for life insurance in 2000 she reduced her true age by five years to gain a lower premium.When Nora died in 2012 her insurance company discovered the truth.Which of the following statements is true?


A) The insurer is not obliged to pay the claim if it will suffer a loss of more than $10 000.
B) The insurer must pay the claim in full.
C) The insurer must pay the claim minus the extra premium if it had known Nora's true age.
D) The insurer is not obliged to pay the claim.

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