Union Bank Lent $200,000 to Wagner

question 39

Multiple Choice

Union Bank lent $200,000 to Wagner.Union required Wagner to obtain a life insurance policy naming Union as beneficiary.While the loan was outstanding,Wagner stopped paying the premiums on the policy.Union paid the premiums,adding the amounts paid to Wagner's loan.Wagner died and the insurance company refused to pay the policy proceeds to Union.Union may:

• A)recover the policy proceeds because it is a creditor beneficiary.
• B)recover the policy proceeds because it is an incidental beneficiary.
• C)not recover the policy proceeds because it is not in privity of contract with the insurance company.
• D)not recover the policy proceeds because one cannot claim insurance for oneself.

---

Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary actions, speech, senses, thought, and memory.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood, controlling basic emotions, and drives.

Cerebellum

A key part of the brain responsible for coordinating voluntary movements, balance, and muscle tone.

Parietal Lobe

The region of the brain located between the frontal and occipital lobes, responsible for processing sensory information regarding the location of parts of the body as well as visual information.