Frugal Insurance Company sells a policy to Grover Company,in-suring the life of one of Grover's key executives. When the executive dies,Frugal re-fuses to pay,noting that it was not licensed to sell insurance in Grover's state and arguing that thus,its policy cannot be enforced. Grover can recover

Question

Quizplus · Accepted Answer

Frugal Insurance Company cannot use its lack of licensing as a defense to avoid paying the policy, as the purpose of licensing is to protect the public, not to allow insurers to escape their obligations. Grover can recover the full amount of the policy.

Frugal Insurance Company Sells a Policy to Grover Company,in-Suring the Life