Question: answer WOMeweer no 4. his application for property insurance, Faustino stated that his California building had an operating automatic fire extinguishing system. He did

answer

answer WOMeweer no 4. \ his application for
WOMeweer no 4. \ his application for property insurance, Faustino stated that his California building had an operating automatic fire extinguishing system. He did not mention that the main valve to the system has been turned off due toa leak that was never repaired. If the insurer issues a policy and there is a fire in this building, a. Faustino's insurer cannot deny the claim because his misrepresentation does not qualify as a warranty in California. o b. Faustino's insurer cannot deny the claim, because in California whether a building has a sprinkler system has no bearing on the insurer's decision to insure it for a certain premium. c. Faustino's insurer may deny a claim because in California his misrepresentation qualifies as an implied warranty. od. The warranty on Faustino's sprinkler system has apparently expired

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!