Question
1. Research and summarize what type of auto insurance is required in the state of North Carolina. 2. Andrew received notice from his auto insurer
1. Research and summarize what type of auto insurance is required in the state of North Carolina.
2. Andrew received notice from his auto insurer that it would not renew his auto insurance policy. It expired June 15th. On June 16th, Andrew was driving and hit another vehicle, killing the passenger of the other vehicle. Later that day Andrew applied for new insurance coverage. On the application he said that he had not been in an accident in the last three years. The new policy was effective at 12:01 am on June 16th. Will the estate of the deceased passenger be able to recover under either the new or the old policy? Why or why not?
3. Insurance policies often contain a covenant of good faith and fair dealing. Even if the clause is not in the policy, often courts will imply it. Explain the covenant of good faith and fair dealing and provide an example illustrating when an insurance company might breach this covenant.
4. Jackson owns a 1969 Ford Mustang convertible that he has restored himself. It is worth $100,000, but with all the hours of labor he has poured into it, it's worth far more to him. He would never part with it for just $100,000. He decides to insure it for $500,000. Much to Jackson's dismay his car is stolen. Will the insurance company pay him $500,000 or $100,000 for his loss? Explain your answer.
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