Question

Ronald is trying to pay down his student loan debt as quickly as possible, so he decides not to purchase dental insurance and uses that money toward debt repayment instead. Ronald bites into something unexpectedly hard and breaks his tooth, causing great pain. Can he enroll in dental insurance tomorrow and make a dentist appointment the following day

Answer 1

Answer:

No, he cannot

Explanation:

Under an insurance contract, the insured agrees to pay small amount regularly, known as insurance premium so as to avoid bearing unexpected, unforeseen huge amount of liability which may arise in the future. Such a loss is borne by the insurer i.e the insurance company.

In the given case, Ronald refused to purchase dental insurance initially and preferred repayment of his student loan. Since he did not hold any insurance at the time of accident/injury, he cannot enroll later for an event that has already occurred i.e the injury.

An insurance contract will now safeguard him against expenses on future accidents/ injuries but will not compensate him for the accident that has already occurred when he held no insurance.