On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance
2006-11-19 23:38:07 · 7 answers · asked by salinachka18 2 in Business & Finance ➔ Insurance
None of the above. Here are reasons why each policy could possibly not pay:
a. if the insured commits suicide within three months of purchasing the policy
b. if the insured sets fire to his own car
c. if the insured has elective cosmetic surgery (NOT reconstructive)
d. If the insured has lied about an exposure on the application (ie, calling your pitt bull breeding farm a poodle grooming salon), also known as material misrepresentation
Sorry! I can think of more reasons why each policy wouldn't have to pay!!
2006-11-20 04:53:18 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
The only one that is assured of making a payment is life insurance and that does not apply to term life. Whole life pays at death as long as you pay the premium. There are Universal and Variable Universal life policies that could pay at death as long as you have either a guaranteed death benefit or the ploicy does not run out of investment assets.
All of the others require something to happen that you would not plan on to have a payment.
Medical insurance is the next to almost guarantee payments as everyone has some medical expense during their lifetime.
2006-11-20 02:47:15 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
Life
2006-11-20 02:13:13 · answer #3 · answered by mamatohaley+1 4 · 0⤊ 0⤋
Death is a certainty so it's only a matter of time before a claim is made.
For the other events, as long as you can show evidence, the company has to compensate.
2006-11-20 01:29:19 · answer #4 · answered by floozy_niki 6 · 0⤊ 0⤋
As the saying goes, only death and taxes are certain. Therefore, only life insurance can be guaranteed to pay a claim with the assumptions you give.
2006-11-20 00:46:44 · answer #5 · answered by deep5223 4 · 0⤊ 0⤋
it extremely is a huge assumption. most of the folk I come for the time of are terrible at administering their own assurance. the superb answer is A, besides the undeniable fact that it extremely relies upon on the variety and layout of the coverage. The assurance corporation does not could desire to stay in corporation for a payout to ensue.
2016-12-29 06:11:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I'm assuming life insurance, because nobody lives forever. (Look these up on Wikipedia if you're not sure what one means.)
2006-11-19 23:48:54 · answer #7 · answered by nyvhek 2 · 0⤊ 0⤋