Exam 30: Insurance

Global Reach, Inc., insures its real and personal property, as well as the lives of its key employees, to protect its financial interest should some event undermine its security. This is

Alain and Bette are partners who own and operate Cakes n' Pies, a chain of dessert restaurants. Their partnership obtains insurance on Alain and Bette's lives. This is

Automobile liability insurance covers liability for property damage but not bodily injury.

Greg obtains from Hearthstone Insurance Company a policy that provides that Greg has thirty days after a premium's due date to pay it before the policy will be canceled. This is

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

Rafe obtains a fire insurance policy on his vacation cabin near Smoky Mountain from Torchlight Insurance Company. The cabin is lost in a fire, but the parties dispute the amount of Torchlight's liability under an ambiguous clause in the policy. A court would most likely

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

An insurer has a duty to avoid paying a claim even if it means acting in bad faith.

Reno is the beneficiary of a life insurance policy on Sula's life obtained from Traditional Insurance Company. The underwriter of this policy is

Hernando obtains an insurance policy that protects him against some risks of loss to the contents of his residence. This is

Anna obtains a business liability insurance policy for her Bagels & Coffee Shop from ChoiceFirst Insurance Company. When an event occurs that gives rise to a claim, each party has a duty to

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

Portia is the beneficiary of a life insurance policy on Quentin's life obtained from Renewal Insurance Company through Stan, an insurance broker. The insured of this policy is

Property insurance cannot be canceled for nonpayment of premiums.

Energy Industries, Inc., obtains insurance policies with Fidelity Insurance, Inc., and Goodworth Insurance Company against the risk of loss of Energy's property. Each policy includes a multiple insurance clause. A fire partially destroys one of Energy's buildings. Energy can collect from Fidelity

Phil is an insurance broker. This means that Phil is

Kent applies for a life insurance policy with Long Life Insurance Company. The consideration Kent pays to Long Life is

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?

A broker is an agent of an insurance company.

Ben obtains a fire insurance policy on his house with Constant Insurance Company. Like all insurance, this policy is an arrangement for