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Question
Bill has a $500,000 life insurance policy naming his minor children as beneficiaries. However, Bill and his business partner, Marcy, are convicted for fraudulent business transactions. Will Bill's children be able to collect the life insurance proceeds?
A. No, policies often do not cover the insured when he/she violates the law.
B. Yes, as it would not be against public policy for beneficiaries to receive insurance proceeds in such a case.
C. Yes, but not entirely. They will be given an allowance for necessaries with the balance going to Marcy's heirs.
D. No, all the proceeds will go to a state administrated crime victims' fund.
Answer
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