Willy Dye goes applies for life insurance. The agent takes Willy's application and his first premium payment,and issues Willy a conditional receipt for the payment. The next day Willy is run over by a sewage truck and killed. An autopsy shows that Willy was in excellent physical condition,and would thus have been issued an insurance policy had he lived. What will the insurer do?

Question

Quizplus · Accepted Answer

The conditional receipt provides coverage from the date it is issued, as long as the insured would have been approved for the policy. Since Willy was in excellent physical condition and would have been approved, coverage existed at the time of his death and the insurer will pay the full death benefit to his beneficiary.

Willy Dye Goes Applies for Life Insurance