Question

Rudolph overhears Macy's plans to go skydiving over spring break. Not really knowing Macy, but figuring it's worth a chance, Rudolph rushes out and buys an insurance policy for $100,000 on Macy's life. Macy does in fact meet her demise jumping out of the airplane. Rudolph can collect the $100,000.
A. True
B. False

Answer 1

Answer:

False.

It wasn't stated if the life insurance covers risky hobbies/activities like skydiving

Explanation:

In this scenario Rudolph does not know Macy. Most likely they are not related for him to tender Macy's death certificate in fulfillment of the requirements for payment.

Delays to payouts may also arise if:

The insured party died during the course of illegal activity such as driving under the influence.

The insured party lied on the policy application.

The insured omitted health issues or risky hobbies/activities like skydiving.