A Husband Buys an Insurance Policy with a Face Value

question 67

Multiple Choice

A husband buys an insurance policy with a face value of $100,000 and names his wife as sole beneficiary.When the husband dies,the insurance company refuses to pay the wife 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.

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Definitions:

Promoting Ethical Behavior

Actions and policies designed to encourage integrity, honesty, and compliance with moral standards within an organization.

Reward

A benefit, recognition, or compensation offered to individuals or teams as an acknowledgment of their efforts and accomplishments.

Ethics Course

An educational course focused on teaching principles and moral decision-making within various professional or personal contexts.

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Individual differences refer to the variety of distinct characteristics and traits among individuals, including abilities, personalities, and preferences.