Acme Life Insurance refused to pay out on a life insurance policy on the late Mr.Levitt.Since such policies are essentially contracts betting on the length of life of the insured,this contract is unenforceable in law by Mr.Levitt's family since it is only the need to protect its business reputation that makes an insurer pay.

Question

Quizplus · Accepted Answer

The statement is incorrect. Life insurance policies are legally enforceable contracts and the insurer is obligated to pay out if the conditions of the policy are met, such as the death of the insured. The need to protect its business reputation is not the only reason an insurer pays out on a claim.

Acme Life Insurance Refused to Pay Out on a Life