Exam 50: Insurance

Kelsey obtains a business liability insurance policy from Loyal Insurance Company for Kelsey's Modeling & Hobby Crafts store. When an event occurs that gives rise to a claim, Loyal has a duty to

Misstatements or misrepresentations in an application for insurance can void a policy.

Dan applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Dan pays the initial premium. Fletch writes a binder, which

Organic Produce Company obtains an insurance policy to protect against losses incurred by the firm as a result of being held liable for personal injuries or property damage sustained by others. This is

Clark obtains from Delta Insurance, Inc., a policy that provides if a dispute arises between the parties concerning the settlement of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is

Vanessa obtains a life insurance policy with no cash surrender value and names her son Winthorp as the beneficiary. This is

An insurance company may cancel an insured's policy for any reason and at any time.

U-Rents Company wants to insure the equipment that it rents to consumers. To obtain insurance, U-Rents must have an insurable interest in the property

Frank applies to GuardDog Insurance Company for homeowners' insurance. The company issues a policy, but later discovers that Frank's application includes several misstatements. Most likely, these misstatements can

State law determines the status of all parties obtaining insurance.

Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo. Estimable obtains an insurance policy from Grangers Insurance, Inc., to cover the silo. Farmland also obtains a policy from Grangers to cover the silo. Later, Farmland sells the silo to Hi-Yield Harvest Company but keeps the policy. Hi-Yield also obtains a policy from Grangers to cover the silo. Estimable agrees to finance Hi-Yield's purchase of the property. A fire totally destroys the silo. Who can recover for the loss?

The insured can cancel a policy only under certain circumstances.