Question

Randall purchased an insurance policy and stated he never had heart trouble, but he had a myocardial infarction several years prior to his application. Shortly after the policy was issued, Randall experienced a fatal heart attack. What action is the insurance company likely to take

Answer 1

Answer:

The action the insurance company should take is that they should cancel the insurance policy between them and Randall and return all the premiums paid to date

Explanation:

Here in this question, we are interested in knowing what action the Insurance company will take in the eventuality that Randall experienced a fatal heart attack.

The action the Insurance company will take is that the insurance policy will be canceled and all premiums which have hitherto being paid by Randall will be returned. What we are saying is that the Insurance company will not be liable or held responsible to make payment for the medical costs of the fatal heart attack suffered.

Hence, we can conclude that the Insurance company in this case is not bind by law to pay for the cost of the medical bill and is only to return the premiums already paid by Randall.