When Ben Applied for Life Insurance, He Was Asked on the Application

question 44

Multiple Choice

When Ben applied for life insurance, he was asked on the application if he smoked or used tobacco products. Ben answered "No." In reality, Ben smokes two packs of cigarettes a day. The policy was issued at the "preferred, nonsmoker rate." If Ben dies 6 months after the policy is issued, upon what grounds will the insurer be able to legally deny the claim?

• A) warranty
• B) misrepresentation
• C) waiver
• D) concealment

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Definitions:

Bipolar Disorder

A psychological disorder marked by severe fluctuations in mood, including periods of mania and episodes of depression.

Severe Mental Disorders

Psychiatric conditions that significantly impair functioning and quality of life, requiring comprehensive treatment and management.

Receive Treatment

The process of getting medical care or therapy for health problems or conditions.

Percent

Percent refers to a part-per-hundred rate, symbolized by the "%" sign, used in expressing proportions, fractions, or shares in relation to a whole.