Preston called Joanna, an insurance broker, to obtain coverage on his $30-$foot sailboat. Joanna told him to send in a binder premium of $$75.$ She told him that by doing so$,$ he would be covered and that he should go ahead and enjoy the boat. Joanna submitted an application for insurance to Boater's Insurance Corp. for issuance of the policy. Boater's declined the coverage. The day Joanna learned this, Preston called and told her a sudden wind caused him to lose control of his boat. He then smashed into another sailboat, causing substantial damage to both boats.

Who will be responsible for the damages?

A$)$

Boater$$s Insurance Corp. will have to pay the damages since it did not notify Preston that he was not covered.

B$)$

Preston will have to pay because no insurance policy is in force until the insurance company accepts the risk.

C$)$

Joanna is responsible because, as a broker, she personally bound coverage for Preston but was unable to place the coverage before the accident.

D$)$

Boater$$s will have to pay since Joanna collected a premium from Preston.