Mary Submitted an Application for Life Insurance and Named Her

question 81

Multiple Choice

Mary submitted an application for life insurance and named her husband Bob as the beneficiary of the $250,000 death benefit that would pay out after her death.Before the application was approved,Mary passed away.Does Bob receive the $250,000?

• A)Yes,because Mary had submitted the application already.
• B)Yes,but only if Mary was pre-approved for the life insurance policy.
• C)Yes,but only if the policy was a guaranteed-issue life insurance policy.
• D)No.If an insurance applicant sustains losses after submission of the application but before it is accepted,the insured must bear the losses.

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Definitions:

Median Income

The midpoint income level at which half of the population earns more and the other half earns less, used as a standard measure of economic well-being.

Female-Headed Families

Households led by a female, often focusing on those with dependents for studies on social and economic issues.

Lorenz Curve

A graphical representation used in economics to show the distribution of income or wealth within a society, illustrating inequality.

Income Equality

The equal distribution of income among all members of society, reducing the gap between the richest and poorest.