Applied for life insurance

Assignment Help Financial Management

Reference no: EM131010046

Bill Boggs just applied for life insurance. During the application process, he indicated that he had never had pneumonia, when the truth is that he did have the disease as a baby. He did fully recover, however, and there were no permanent ill effects. Bill was unaware of having had pneumonia as a baby until a few weeks after he completed the application when his mother told him of the event.

Will this misstatement on the life insurance application be grounds for the insurer to cancel his life insurance after it is issued?

Why or why not? If he discovers his error, should he notify the insurer? Will his statements be treated as warranties, or as representations?

Reference no: EM131010046

Questions Cloud

What theories or concepts are discussed in the studies : Briefly discuss each study. Why were you interested in this area of study? Are the studies you found Effects Studies, Gratifications Studies, or other? What theories/concepts are discussed in the studies? If you were doing research in this area, w..

What rate alans tax liability change if he takes extra job : Alan earns $85,000 per year and is considering a second job that would earn him another $10,000 annually. At what rate will his tax liability (the amount he must pay in taxes) change if he takes the extra job?

Calculate the present value of cash flows : Suppose that a firm’s recent earnings per share and dividend per share are $3.50 and $2.50, respectively. Both are expected to grow at 7 percent. However, the firm’s current P/E ratio of 16 seems high for this growth rate. Compute the dividends over ..

What is net interest income earned in dollars-spot rate : Sun Bank USA has purchased a 16 million one-year Australian dollar loan that pays 12 percent interest annually. The spot rate of U.S. dollars for Australian dollars is $0.6250/A$1. What is the net interest income earned in dollars on this one-year tr..

Applied for life insurance : Bill Boggs just applied for life insurance. During the application process, he indicated that he had never had pneumonia, when the truth is that he did have the disease as a baby. Will this misstatement on the life insurance application be grounds fo..

Outline first chapter of dissertation : Outline first chapter of Dissertation by nate wenneker june 2012 from Capella University

What annual interest rate would the bank have to pay : If you wished to withdraw $40,000 in 5 years to buy a Mercedes, how much money would you need to deposit today in Citizens Savings Bank if they pay 12 percent interest (compounded monthly) If you had $24,836.85 to deposit today in Citizens Savings Ba..

Discuss the most important milestones for innovation : Discuss the most important milestones for innovation - Discuss how your innovation has affected organisations management approach

Show the relationship between present and future value : Show the relationship between present and future value by solving the following: What is the present value of an investment that offers payments of $6,000 at the end of year 1; $4,000 at the end of year 2; and $2,000 at the end of year 3 if money can..

User Account

All Pages