Husband Buys an Insurance Policy with a Face Value of $100,000

question 63

Multiple Choice

Husband buys an insurance policy with a face value of $100,000 and names his wife as sole beneficiary.When husband dies,the insurance company refuses to pay her the $100,000.Which of the following best describes this situation?

• A) The wife cannot sue the insurance company because she was not a party to the contract and does not have privity.
• B) The wife can sue the insurance company because she was a party to the contract and does have privity.
• C) The wife cannot sue the insurance company because she does not have an insurable interest in her husband.
• D) The wife can sue the insurance company because she is a third-party beneficiary to this contract.

---

Definitions:

Mapping

The process of representing or outlining the relationship between elements in a space or concept.

Implicit Assumption

An underlying premise that is taken for granted or understood without being explicitly stated.

Guidance

The act of offering direction, advice, or instructional information to another, usually aimed at achieving a goal or solving a problem.

Explicit Reason

A clear and detailed reason that is directly stated or explained, without ambiguity.