Mary was married to Scott and purchased a life insurance policy on Scott’s life. A few...

Mary was married to Scott and purchased a life insurance policy on Scott’s life. A few years later they divorced, and Mary remarried, but Scott’s life insurance policy remained active. Scott dies of a heart attack and Mary files a life insurance claim. Which of the following statements is (are) TRUE about Mary's life insurance claim? I. Mary’s claim can be denied if her current husband has a life insurance policy with her as a beneficiary. II. The claim will only be paid if she had children with Scott.

A.
I only.
B.
II only.
C.
both I and II.
D.
neither I or II.

Solutions

Expert Solution

B. II only.

The reason being, Mary would have been entitled to the Scott's life insurance policy if she was either his wife or had child/ren from Scott. In fact she not only divorced Scott, but also remarried. Thus, the only way she could claim the insurance policy of Scott, was if she had children from him.

keosha answered 1 year ago

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