Asked by Julianna Velaj on May 26, 2024
Verified
Fresco Inc. insures the life of Giotto, a key Fresco executive. Giotto leaves the firm to work for HVAC Company. Fresco continues to pay the premiums on the policy. Giotto subsequently dies. Benefits under the policy can be collected by
A) Giotto's estate.
B) Fresco.
C) HVAC.
D) none of the choices.
Premiums
The amounts paid for insurance coverage by the insured to the insurance company.
- Understand the prerequisites for establishing insurable interest and their effect on obtaining and retaining insurance coverage.
Verified Answer
AE
Allyson EversMay 27, 2024
Final Answer :
B
Explanation :
Fresco, as the policyholder and premium payer, is entitled to the benefits of the life insurance policy, even after Giotto left the company.
Learning Objectives
- Understand the prerequisites for establishing insurable interest and their effect on obtaining and retaining insurance coverage.