An applicant for life insurance informs the agent that he has had rheumatic fever, but the agent fails to record this information for fear the application will be denied and he will lose a commission. The applicant signs the application, and in so doing, indicates that he has read the application and certifies its accuracy. Under which of the following doctrines, if any, might the insurer be denied the opportunity to void the policy if the facts are discovered?
A) subrogation,
B) indemnity,
C) insurable interest,
D) waiver,
E) none of these is applicable.

Question

Quizplus · Accepted Answer

The doctrine of waiver applies here because the agent, acting on behalf of the insurer, knowingly waived the right to know about the applicant's rheumatic fever by choosing not to record this information. This action could prevent the insurer from voiding the policy later on the basis of nondisclosure of this condition.

An Applicant for Life Insurance Informs the Agent That He