Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 11

Now assume that Vicki has loaned George $50,000. George again mentions that he is going to learn to hang glide during spring break, so Vicki purchases the $100,000 life insurance policy on George's life. If George dies and the insurance company refuses to pay … (a) Vicki will win $100,000, but only if she mentioned animal bites to the insurance agent.
(b) Vicki will win $100,000 regardless of whether she mentioned animal bites to the insurance agent.
(c) Vicki will win $50,000.
(d) Vicki will win nothing.