Question

13) Bruce left a question about heart disease blank on his life insurance application because he wanted to speak with his doctor before answerins. After speaking with his doctor, he forgot to complete that question and the application was submitted. The insurance company issued the policy. Several weeks later, Bruce was speaking with his insurance agent and told the agent that Bruce did, in fact, have heart disease. Bruce died 9 months later and the insurance agent told the company he knew Bruce did have a heart condition at the time the policy was issued. The insurance company tries to deny payment on the life insurance policy. Which life insurance policy provision will require the life insurer to pay the beneficiary even though Bruce did not disclose his heart problem on the application? A) beneficiary clause B) entire contract clause C) ownership clause D) change-of-plan provision .. nastirinatine life insurance policy 15 years ago. Her life insurance needs

Answer 1

In this case, the entire contract clause (option B) will require the life insurer to pay the beneficiary even though Bruce did not disclose his heart problem on the application. This is because the entire contract clause implies that the entire agreement between the insured and the insurer is contained in the contract, including the application if it is attached, declarations, insuring agreements, exclusions, conditions and endorsements. So even though the insurance agent came to know about the disease, but it was not there in the policy agreement & going by the provision of entire contract clause, the insurer will be required to pay the beneficiary.