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 his application by stating that he did not smoke or use tobacco products when in fact he did. This misrepresentation could give grounds for the insurer to legally deny the claim.

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