Marlene has a life insurance policy with ABC Insurance. The policy has a 30-day grace period...

 

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Marlene has a life insurance policy with ABC Insurance. The policy has a 30-day grace period and a death benefit of $250,000. Marlene's husband, Marcus, is the beneficiary on the policy. Marlene's monthly premium is $1.500 which is due on the 1st of each month. Last year, Marlene assigned her policy for a collateral loan from XYZ bank. The loan was originally for $40,000 and the current outstanding balance is $35,000, Marlene is injured in a serious accident and is hospitalized. Her current monthly premium has not yet been paid and on the 15th of the month, Marlene dies as a result of her injuries. Which of the following statements CORRECTLY describes the outcome in this case? Marcus receives $250,000; Marlene's estate must repay $35,000 to XYZ bank; Marlene's estate must pay the $1,500 outstanding premium to ABC insurance. Marcus receives $248,500; Marlene's estate must repay $35,000 to XYZ bank. Marcus receives $215,000: ABC Insurance pays $35,000 to XYZ bank: Marlene's estate must pay the $1,500 outstanding premium to ABC insurance. 16 L Oa) Ob) Oc) Od) Marcus receives $213,500; ABC Insurance pays $35,000 to XYZ bank. Marlene has a life insurance policy with ABC Insurance. The policy has a 30-day grace period and a death benefit of $250,000. Marlene's husband, Marcus, is the beneficiary on the policy. Marlene's monthly premium is $1.500 which is due on the 1st of each month. Last year, Marlene assigned her policy for a collateral loan from XYZ bank. The loan was originally for $40,000 and the current outstanding balance is $35,000, Marlene is injured in a serious accident and is hospitalized. Her current monthly premium has not yet been paid and on the 15th of the month, Marlene dies as a result of her injuries. Which of the following statements CORRECTLY describes the outcome in this case? Marcus receives $250,000; Marlene's estate must repay $35,000 to XYZ bank; Marlene's estate must pay the $1,500 outstanding premium to ABC insurance. Marcus receives $248,500; Marlene's estate must repay $35,000 to XYZ bank. Marcus receives $215,000: ABC Insurance pays $35,000 to XYZ bank: Marlene's estate must pay the $1,500 outstanding premium to ABC insurance. 16 L Oa) Ob) Oc) Od) Marcus receives $213,500; ABC Insurance pays $35,000 to XYZ bank.

Answer rating: 100% (QA)

Option D is correct 21350000 Marcus will receive and ABC ... View the full answer