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A Policy of Life Insurance Provided That the Insurers Would

Question 34

Multiple Choice

A policy of life insurance provided that the insurers would pay to the insured or his assignees the sum of $1000.00 if he died before July 31,1926.The insured assigned the benefit of the policy to his wife and gave written notice of the assignment to the insurers.The policy was later extended,on the payment of an additional premium,for a further three months,but the benefit of the extension was not assigned to the wife.The insured died within the three-month extension period and the matter went to court on the issue of whether or not the wife benefited from the extension of the policy so as to be entitled to the insurance money.In this case


A) the rule regarding notice of an assignment was not followed.
B) the extension of the policy was for the benefit of the wife and a trust had been created in her favour so as to entitle her to the insurance money.
C) the intention of the insured was not to benefit his wife,so she gets nothing.
D) the normal rule of privity applies and the wife gets nothing.
E) none of the above

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