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administrative, beneficiary, confronted, insurance

Harry and David were partners in a small mortgage business. Harry provided the financing, and David did the administrative work. Harry was pursuing a secret love affair with David's wife, Susan. David suffered from a serious heart condition. Harry took out a $2,000,000 insurance policy on David's life with Galaxy Life Insurance Company, naming Susan as the beneficiary.

Harry and Susan confronted David with their affair and demanded that David agree to a divorce. The shock triggered a fatal heart attack. Galaxy refused to pay.

Is the company on strong legal grounds?
If so, why?
If not, why not?

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Harry and David were partners in a small mortgage business. Harry provided the financing, and David did the administrative work. Harry was pursuing a secret love affair with David's wife, Susan. David suffered from a serious heart condition. Harry took out a $2,000,000 insurance policy on David's life with Galaxy Life Insurance Company, naming Susan as the ...

Solution Summary

The solution discusses important issues related to insurance claims.

$2.19