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| *Ostroff, Fair and Company>>>Insurance |
Anyone can explain this clause in detail? |
There are limitations and conditions regarding payment of benefits due to misrepresentations on the application of when death is the result of suicide in the first two policy years. I don't get the part "due to misrepresentations on the application of" Yes, they are two different things. The limitation is, if you "misrepresent" something, and they find out about it after you die, they only have to refund your premium. Several examples of misrepresenting something - the application asks if you have any serious illnesses. You have cancer, but say no, you don't. They don't find out about it until after you die. They don't pay. Your major hobby is being a test pilot. You do not list that on the application. They don't find out about it until after you die. They don't pay. That's what a misrepresentation is - something not disclosed on the application, that if it WAS disclosed, would have affected either the rates you pay (like smoking or recreational drug use) or whether they would have even issued you a policy in the first place (like AIDS or cancer). Source(s): agent, 20+ years It means if you (or whomever is covered ) kills themself in the first two years, no one gets any money. If you lie on the application about the nature of the death, no one gets paid. My guess is it is a typo and probably should read: "...misrepresentations on the application OR when death is the result..." |
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