Question

Mordecai's life insurance lapsed four years after the policy was issued because he failed to make premium payments. The insurer reinstated the policy several months later when he made the required payments and provided the medical and financial information the insurer required. Twelve months later, Mordecai commits suicide and his beneficiaries ask Larry, his insurance agent, whether the claim will be paid. What should Larry tell the beneficiaries?

Accepted Answer

The claim will be rejected, because the suicide exclusion begins with the date the insurer reinstates the policy.

Answer

The claim will be paid, because the incontestability clause ended two years after the policy was issued.

Answer

The claim will be paid, because paying the death benefit would be consistent with public order and community standards.

Answer

The claim will be rejected, because Mordecai's poor mental health was, in all likelihood, a preexisting condition.

Mordecai's life insurance lapsed four years after the policy was issued because he failed to make premium payments. The insurer reinstated the policy…

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