Asked by Gisella Perez on May 01, 2024
Verified
Acme Life Insurance refused to pay out on a life insurance policy on the late Mr. Smith. Since such policies are essentially contracts betting on the length of life of the insured, this contract is enforceable in law by Mr. Smith's family only because the need to protect its business reputation makes an insurer pay.
Life Insurance
A contract between an insurer and an insured individual that promises payment of a death benefit to designated beneficiaries upon the insured's death.
Contracts
Legally binding agreements between two or more parties that are enforceable by law.
Enforceable
Capable of being imposed or upheld by a court of law or other authority.
- Recognize the enforceability and validity of contracts based on content, context, and parties involved.
- Assess the role of public policy and interest in determining the legality of agreements.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
False
Explanation :
Life insurance policies are legally enforceable contracts, and the insurer's obligation to pay out on such policies is based on the terms of the contract and applicable laws, not merely on the need to protect its business reputation.
Learning Objectives
- Recognize the enforceability and validity of contracts based on content, context, and parties involved.
- Assess the role of public policy and interest in determining the legality of agreements.