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George forgot to pay his monthly life insurance premium that was due on March 1. The policy had a ...

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George forgot to pay his monthly life insurance premium that was due on March 1. The policy had a ...

George forgot to pay his monthly life insurance premium that was due on March 1. The policy had a face value of $100,000. On March 21, George died. How much will the insurer pay George's beneficiary for this death claim, assuming the policy contained a standard grace period clause?
A) Whatever cash value has accumulated in the policy
B) $100,000
C) $0
D) An amount equal to the face value of the policy, MINUS the overdue premiums and any interest or late penalties George owed them

Textbook

Introduction to Risk Management and Insurance

Edition: 10^th

Authors: Dorfman, Cather

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