Health and Life Insurance

Category - Annuities & Policies

There are exceptions to the full payment of life insurance policies. Which of the following is not an exception to the payment of the full face amount?
  1. Error in determining the age or gender of the insured at policy issuance
  2. Premium payments are due
  3. Error in the beneficiary address
  4. Outstanding loans against the policy
Explanation
Answer: C - An error in the address of the beneficiary would not prevent the full payment of a life insurance policy. Life insurance policies generally pay the full face amount of the policy unless there are outstanding loans against the policy, a premium is due, and/or errors in age or gender occurred when the policy was issued. Although not unusual, these mistakes are rarely intentional and not enough to void the policy.
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