1. Karim is a financial advisor for a large private equity firm. From his years of work, he accumulated some savings and wants to start his own business by building a hotel. He approached Ahli United Bank in order to secure a loan for his upcoming venture. With his equity and loan, he was able to purchase a land from Purple Bricks Realty and finance the construction of his project through signing an agreement with TKO Contractors to build the Hotel in Muharraq.
   1. Determine the insurable interest in the project for the following parties; (1 mark)
      1. Karim:
      2. Ahli United Bank:
      3. Purple Bricks Realty:
      4. TKO Contractors:

2. After completing the project, and worried about potential losses, Karim wanted to acquire a property insurance coverage plan. While completing the application for the policy, Karims insurance agent informed him that there are circumstances that will lead to the insurer denying payment of losses. Explain any three reasons that will render the contract void and the compensation denied to Karim if they occur. (1.5 marks)

3. Two years after the policy was issued an electrical fire destroyed five guest rooms. The fire damage amounted to a loss of $85,000. The agent had placed the insurance coverage with three property insurers. Insurer A provided $1,850,000 of coverage; insurer B covered $2,100,000 while insurer C had $1,050,000 of coverage. The policy contained a pro rata liability provision. How much will Karim collect from each insurer? (1 mark)