A) While driving home from work, Bailey's car is struck from behind by a van full of drunken college students. Asimov is the driver of the van. The resulting damage to Bailey's car totals $7,000. Bailey files a claim under his own auto insurance policy to have his car repaired, but his insurance policy only covers $6,000 of the $7,000 loss. Bailey pays the remaining $1,000 of the loss out of his pocket. Which of the following principles of insurance applies to the above situation and why? State at lest two purposes of selected principle.

Principles: Principle of indemnity, Principle of insurable interest, Principle of subrogation and Principle of utmost good faith

B) Shicara owns a jewelry store. In exchange for a discount on her burglary insurance premium, she promises the insurer that her trained guard dog will be on the premises at all times, even when the store is closed. One evening she takes the dog home with her instead of leaving him at the store, and a burglar breaks in and steals everything. The insurance company finds out the dog wasn't in the store when the burglary happened, and denies the claim. Which of the following principles applies to the above stated situation for that insurer denies the claim? Explain how the relevance of the selected principle

Principles: Material misrepresentation, breached a warranty, committed a concealment, violated the principle of adhesion