Exam 27: Insurance Law

What is the express term in the insurance policy which serves as the conditions on which an insurer's liability is based?

The insured is not entitled to recover under a property insurance policy if she had an insurable interest at the time the policy was purchased but did not have an insurable interest the time the loss occurred.

B.G.Disco purchased a property insurance policy and named himself as the beneficiary.Disco had no ownership interest in the house at the time he purchased the policy.The house was in fact owned by his aunt,Polly Espy.He procured the insurance,however,because he hoped to inherit the house at some future date and thus wanted to protect that potential interest.A month after Disco purchased the policy,Aunt Polly's house was destroyed by fire,a covered peril.Is Disco entitled to collect under the insurance policy? Explain your reasoning.

When does an insurer's contractual obligations to the insured commence?

Bradley suffers a covered loss under his homeowner's policy but the insurer stonewalled for years before finally paying.Bradley can sue the insurer for ________.

Since the relationship between the insurer and the insured is contractual in nature,the parties must fulfill all elements of:

Mr.White is a doctor and purchases insurance on him professionally making a mistake.This form of insurance is called:

Kyle buys life insurance and specifies his wife Ann will receive the death benefit if Kyle passes away.Ann is the ________.

Jake,a surgeon,kills a patient on the operating table.The insurer is not clear if Jake's actions were negligent or if Jake deliberately did something wrong.How can the insurer determine if it has a duty to defend Jake in the lawsuit brought by the patient's family?

Which of the following agreements provides temporary insurance coverage until the time the insurer decides to accept or reject the applicant's application?

The difference between a wagering contract and an insurance contract is that the insurance contract:

Automobile insurance is what type of insurance?

Ace Insurance Company issues a legal malpractice insurance policy to Bob,an attorney.Bob decides to skip a court appearance to go relax at his beach house.His client,Gina,brings a legal malpractice claim against Bob based on his failure to appear.Ace is unsure whether its policy covers intentional acts such as Bob's decision.Is Ace obligated to provide Bob with an attorney to represent him in Gina's malpractice claim against him? Explain.

When Petie and Geri Adams purchased a house in 1992,they insured it with Goodfriend Insurance Co.This property insurance policy has a policy limit (face amount)of $125,000.That figure matched the fair market value of the house as of the time the Adams procured the policy.Generally due to the declining property values in the small town where the house was located,the house now has a fair market value of $101,000 as of August 1,1997.On that date,the Adams' house was completely destroyed by fire,a covered peril.The Adams have filed a claim and proof of loss with Goodfriend.If the policy at issue is a valued policy,how much are the Adams entitled to collect from Good friend? Why that amount? If the policy at issue is an open policy,how much are the Adams entitled to collect? Why that amount?

When insurance policy provisions must be interpreted,a court will generally interpret them as they would be understood by an average person.

Sarah entered into an auto insurance contract with ABC Insurance (ABC).On the application,Sarah stated that she had never been in an accident.In truth,Sarah had been in seven accidents in the last ten years.As a result,this contract is:

Caroline is buying homeowner's insurance.She knows it will take time between the submission of her application and the application's approval but she wants to get covered immediately.What does she need?

What does it mean when reformation occurs?

Ruth purchased a property insurance policy from ABC Insurance (ABC).This policy covered Ruth's airplane and the policy limits were $300,000.A fire broke out on January 1,2006,when the airplane was stored in its hangar,completely destroying the airplane.There was suspicious evidence that the fire had been deliberately set,and ABC honestly believed that Ruth had set the fire.ABC refused to pay on this policy.However,Ruth was completely innocent,and she sued to enforce the policy.The lawsuit,which ended on January 1,2007,determined that Ruth had nothing to do with the fire.Because Ruth needed to use a private airplane to visit clients in remote areas,she rented an airplane during the calendar year 2006.This cost her $50,000.ABC was aware that Ruth needed an airplane to reach her clients when it issued the policy.Ruth would have used the policy limits of $300,000 to purchase another airplane in 2006,but for ABC's refusal to pay on its policy.Under these circumstances,Ruth is entitled to a judgment in the amount of:

A means by which insurance law separates insurance contracts from wagering contracts is the typical requirement that the party who purchases a policy of property or life insurance must possess a(n)________ in the property or life being insured.