Are you having trouble answering the question “Steven, age 53, purchased a disability income policy when he was 33. When he applied for the policy, he stated his age as 23 on the application. Steven submits a claim and the insurance company discovers the error. What action will the insurance company take?”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.
Steven, age 53, purchased a disability income policy when he was 33. When he applied for the policy, he stated his age as 23 on the application. Steven submits a claim and the insurance company discovers the error. What action will the insurance company take?
a. Pay the full claim
b. Deny the claim and void the policy for misrepresentation and fraud
c. Pay the full claim and void the policy for concealment and misrepresentation
d. Pay the claim, but a decreased amount of benefits based on the premiums Steven should have paid, had his correct age been stated in the application
Answer: d. Pay the claim, but a decreased amount of benefits based on the premiums Steven should have paid, had his correct age been stated in the application
You should now have gotten the answer to your question “Steven, age 53, purchased a disability income policy when he was 33. When he applied for the policy, he stated his age as 23 on the application. Steven submits a claim and the insurance company discovers the error. What action will the insurance company take?”, which was part of Insurance MCQs & Answers. Thanks for choosing us.
