Tiffany, Who Is Married to Saul, Takes Out a $1,000,000

question 10

Multiple Choice

Tiffany, who is married to Saul, takes out a $1,000,000 life insurance policy on Saul's life in 2008. Two years later they get divorced and Tiffany immediately remarries. Saul is not required to pay any alimony or child support to Tiffany after the divorce. In 2015, Saul dies. What will Tiffany collect on the life insurance policy, assuming she continued to pay all premiums due following their divorce?

• A) $0, because Tiffany has no insurable interest
• B) $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased
• C) $1,000,000, because Tiffany had insurable interest in Saul's life at the time of his death
• D) $0, because Saul was not ordered to pay alimony to Tiffany

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Definitions:

Church Donations

Contributions made by individuals or entities to a church, which can be monetary or in the form of goods and services.

Publicly Held Corporations

Companies that sell their shares publicly, allowing the public to invest and own a portion of the company.

Professional Managers

Individuals or entities specialized in overseeing and making managerial decisions for businesses or organizations to ensure their effective and efficient operation.

Close Corporations

Privately held businesses with a small number of shareholders and no public market for their shares, often operated by the shareholders themselves.