Question
Ramona sells her bar, Ramonas Tavern, to Izabella. Three weeks later, Ramonas Tavern burns to the ground. Ramona realizes that she forgot to cancel the
Ramona sells her bar, Ramonas Tavern, to Izabella. Three weeks later, Ramonas Tavern burns to the ground. Ramona realizes that she forgot to cancel the insurance on the bar, so she files an insurance claim. The insurance company investigates the fire and determines that it was an accident, so the claim is proper. As the insurance company is processing the check, however, they discover that Ramona no longer owns the bar. The insurance company: A. has to pay Ramonas claim because it would violate public policy not to pay it. B. does not have to pay Ramonas claim because Ramona committed fraud on the insurance company. C. does not have to pay Ramonas claim, because, at the time of the fire, Ramona had no insurable interest in the bar. D. has to pay Ramonas claim if Ramona made all the premium payments as they came due.
follow USA law .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started