Rex Karrs was involved in an automobile accident with Alan Egshel. Egshel was injured in the accident, and Egshels automobile was totaled. Local police investigating the accident concluded that Karrs ran a stop sign and struck Egshels vehicle. Karrs was issued a traffic citation for careless driving and failing to heed a stop sign. Karrs was insured by Shady Insurance at the time of the accident. Shady defended Karrs in the lawsuit that Egshel filed against Karrs and subsequently settled the case through payment to Egshel to compensate him for his injuries and loss of his automobile.

But what if the facts of the case were different? Select each set of facts below that could affect Shadys payment to Egshel.

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• The accident was caused by Karrs adult daughter who was driving her own automobile at the time of the accident.The accident was caused by Karrs adult daughter who was driving her own automobile at the time of the accident.

• The accident occurred after Karrs met with Shadys insurance agent, paid the premium, and signed the insurance application but before the insurance policy was issued.The accident occurred after Karrs met with Shadys insurance agent, paid the premium, and signed the insurance application but before the insurance policy was issued.

• Shady discovered that Karrss application for automobile insurance contained a misstatement three years after the accident.Shady discovered that Karrss application for automobile insurance contained a misstatement three years after the accident.

• Karrs submitted a claim but refused to discuss the matter further with Shady during its investigation of the accident.Karrs submitted a claim but refused to discuss the matter further with Shady during its investigation of the accident.