MTHEL131 Lecture Notes - Lecture 7: Life Insurance, Term Life Insurance
12 Apr 2016
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Uniform insurance act policy provisions of 1923 (law: days of grace, statements made are representaions not warranies, if statement was wrong they commited misrepresentaion, 2 types of misrepresentaion. If they had known that they would not have issued policy. Person had stomach aches but doctor said don"t worry about it. Insurer can say this info was material and not pay. They show you applicaion that says its . Insurer charges him for that age of entry for premiums. When he dies 40 years later they ind out he was actually 30 when he applied. Insurer doesn"t have to pay anything: misstatement of age, go back to age of entry and check what premiums would be for coverage of that premium. Ex: bill pays a month when he entered. If that was what he was paying for age 30, he would actually get a lower coverage. Will not pay if policy is enforced for less than 2 years: war.
