When Ben applied for life insurance,he was asked on the application if he smoked or used tobacco products.Ben answered "No." In reality,Ben smokes two packs of cigarettes a day.The policy was issued at the "preferred,nonsmoker rate." If Ben dies 6 months after the policy is issued,upon what grounds will the insurer be able to legally deny the claim?

Question

Quizplus · Accepted Answer

Ben made a misrepresentation on the application by answering "No" to the question about smoking. This misrepresentation is material to the risk being insured and could result in the insurer denying the claim based on grounds of fraud.

When Ben Applied for Life Insurance,he Was Asked on the Application