Insurance Company violates a state licensing statute when selling a policy to Jay, in whose state it is not licensed to sell insurance. As a member of the class of persons protected by the statute, Jay can
A)none of the choices.
B)enforce the policy and recover from the insurer.
C)obtain a license to sell insurance and a list of the insurer's customers.
D)collect benefits under the policy immediately.

Question

Quizplus · Accepted Answer

Jay, as a member of the class protected by the state licensing statute, can enforce the policy and recover from the insurer. This is because the insurance company violated state law by selling a policy in a state where it was not licensed, and the purpose of such licensing statutes is typically to protect consumers in that state.

Insurance Company Violates a State Licensing Statute When Selling a Policy