Answer all The Questions..

1. (a) In a contract of insurance explain the duty of disclosure that rests on the assured. What is meant by an "insurable interest"? (b) K owned a cottage by the sea which was valued at $30,000, though it was only insured for f15,000. It was damaged by storms to the value of $10,000. K wishes to make a claim against the insurance company for the damages. Advise K. Would your advice be different if K's insurance policy contained a "subject to average" clause? 2. "A common carrier is an insurer of the goods carried". What does this statement mean and what are the exceptions to it? 3. (a) What is the effect of the following words written within the crossing of a cheque: "Not negotiable"; "And Co"; and "Account payee"? (b) H sold goods to J and received a cheque as payment. J changed his mind about the purchase and instructed his bank, the Z Bank, not to pay the cheque. H presented the cheque for payment and the Z Bank, having overlooked the stop order, paid it. J is now seeking to recover the money paid to H from Z Bank. Advise J