insurance at its home office, and that the application contains an incomplete or missing answer. Assume that the insurer does not contact the applicant for anche applicant de llit lita PIUDICI Uues 10 have to be stated in the application. The insurer could be estopped from denying benefits on the grounds that this information was not included in the application CASE APPLICATION Jeff is a book dealer who purchased a building from Richard. Jeff obtained a loan from the Gateway Bank to purchase the building, which held a mortgage on the building. Jeff planned to store his inventory of books in the building. He also planned to use part of the building for a fast-food restaurant. When Jeff applied for property insurance on the building, he did not tell the agent about the fast-food restaurant because premiums would be substantially higher. Eight months after the policy was issued, a fire occurred in the restaurant that caused substantial damage to the building. a. Do any of the following parties have an insurable interest in the building at the time of loss? Explain your answer. 1. Jeff 2. Richard 3. Gateway Bank b. Richard told Jeff he could save money by taking over Richard's insurance instead of purchasing a new policy. Can Richard validly assign his existing property insurance policy to Jeff without notifying the insurer? Explain your answer. c. Could Jeff's insurer deny coverage for the fire loss based on a material concealment? Explain your answer. d. Investigation of the fire revealed that an electrician improperly wired an electrical outlet in the restau- rant, which caused the fire. Explain how subroga- tion might apply in this case. & Aa J i 1009 AM