Jeff is a book dealer who purchased a building from Richard. Jeff obtained a loan from the
Question:
a. Do any of the following parties have an insurable interest in the building at the time of loss? Explain your answer.
1. Jeff
2. Richard
3. Gateway Bank
b. Richard told Jeff he could save money by taking over Richard's insurance instead of purchasing a new policy. Can Richard validly assign his existing property insurance policy to Jeff without notifying the insurer? Explain your answer.
c. Could Jeff's insurer deny coverage for the fire loss based on a material concealment? Explain your answer.
d. Investigation of the fire revealed that an electrician improperly wired an electrical outlet in the restaurant, which caused the fire. Explain how subrogation might apply in this case.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
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