banking and insurance

Case 4: PART-B (5 Marks) Jack owns a villa and has an elderly uncle living with him. Jack decides he needs fire insurance on the villa and a life insurance policy on the uncle to cover funeral and other expenses that will result from his uncle's death. Jack takes out a $10,000 fire insurance policy from Insurance Co. A and a $5,000 life insurance policy from Insurance Co. B on his uncle. Three months later, Jack sells the villa to Peter and transfers the title and fire insurance policy to him. Jack and his uncle decide to move into a flat. With two months remaining on the Policy A, a fire destroys the villa, and loss from the fire was approximately 25,000 and at around the same time, Jack's uncle dies. Insurance Co. A pays Peter a sum of $8,000, although the damages were more than $10,000, viz, the value of the insurance cover. Insurance Co. B rejects the claim citing they hold no liability under the insurance contract.' You are required to: a) What is the maximum amount Peter can claim? (50 words minimum/1 Mark) b) Examine and explain which principles of insurance apply to the above scenario? 101 Page (150 words minimum/2 Marks) c) Critically evaluate the case and share your thoughts as to what ideally should have happened based on the principles of insurance (100 words minimum/2 Marks)