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

Question

Quizplus · Accepted Answer

Life insurance policies are legally enforceable contracts, and the insurer's obligation to pay out on such policies is based on the terms of the contract and applicable laws, not merely on the need to protect its business reputation.

Acme Life Insurance Refused to Pay Out on a Life