1 While driving home from work, Hendrik's car is struck from behind by a van full of drunken college students Ashman is the driver of the van The resulting damage to Hendrik's car totals RM7,000 Hendrik files a claim under his own auto insurance policy to have his car repaired, but his insurance policy only covers 6,000 of the 7,000 loss, Hendrik pays the remaining 1000 of the loss out of his pocket Which of the following is a TRUE statement Hendrik's insurer has subrogation rights against Ashman for the damages he has caused Hendrik has no legal right of subrogation against Ashman for the 1000 that he had to pay out of his pocket Hendrik insurer has no legal right of subrogation against Ashman for the 6,000 of damages it had to pay to Hendrik Hendrik has the right under the principle of indemnity to now sue Ashman personally for the 7,000 damages to his car 2 Tommy owns a jewellery store In exchange for a discount on her burglary insurance premium, he promises the insurer that his trained guard dog will be on the premises at all times, even when the store is closed One evening he took the dog home with him instead of leaving the dog at the store, and a burglar broke in and steals everything The insurance company found out the dog wasn't in the store when the burglary happened, and denies the claim Why does the insurer do this a Because Tommy concealed a fact b Because Tommy breached a warranty c Because Tommy violated the principle of adhesion d Because Tommy committed a material misrepresentation 3 Dina loans her brother, Malik, RM500,000 with which to start a movie production company The business assets are shown in the loan agreement as collateral for the loan Dina can insure Malik' life because this is a trick question she cannot insure his life, but she can insure the business assets the principle of utmost good faith exists in this situation the principle of insurable interest exists in this situation Dina and Malik are brother and sister Jamal has a property insurance policy on a building that would cost 200,000 to replace His insurance policy is written on an actual cash value basis His building suffers fire damage that has a replacement cost of 50,000 The building is 2 years old, with an estimate useful life of 20 years How much will he collect for the fire damage a 5000 b 10 000 c 25 000 d 30 000

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1. While driving home from work, Hendrik's car is struck from behind by a van full of drunken college students. Ashman is the driver of

1. While driving home from work, Hendrik's car is struck from behind by a van full of drunken college students. Ashman is the driver of the van. The resulting damage to Hendrik's car totals RM7,000. Hendrik files a claim under his own auto insurance policy to have his car repaired, but his insurance policy only covers 6,000 of the 7,000 loss, Hendrik pays the remaining 1000 of the loss out of his pocket. Which of the following is a TRUE statement?
1. Hendrik's insurer has subrogation rights against Ashman for the damages he has caused.
2. Hendrik has no legal right of subrogation against Ashman for the 1000 that he had to pay out of his pocket.
3. Hendrik insurer has no legal right of subrogation against Ashman for the 6,000 of damages it had to pay to Hendrik
4. Hendrik has the right under the principle of indemnity to now sue Ashman personally for the 7,000 damages to his car
2. Tommy owns a jewellery store. In exchange for a discount on her burglary insurance premium, he promises the insurer that his trained guard dog will be on the premises at all times, even when the store is closed. One evening he took the dog home with him instead of leaving the dog at the store, and a burglar broke in and steals everything. The insurance company found out the dog wasn't in the store when the burglary happened, and denies the claim. Why does the insurer do this?
a. Because Tommy concealed a fact.
b. Because Tommy breached a warranty
c. Because Tommy violated the principle of adhesion
d. Because Tommy committed a material misrepresentation.
3. Dina loans her brother, Malik, RM500,000 with which to start a movie production company. The business assets are shown in the loan agreement as collateral for the loan. Dina can insure Malik' life because
1. this is a trick question; she cannot insure his life, but she can insure the business assets.
2. the principle of utmost good faith exists in this situation.
3. the principle of insurable interest exists in this situation.
4. Dina and Malik are brother and sister
Jamal has a property insurance policy on a building that would cost 200,000 to replace. His insurance policy is written on an actual cash value basis. His building suffers fire damage that has a replacement cost of 50,000. The building is 2 years old, with an estimate useful life of 20 years. How much will he collect for the fire damage? a. 5000 b.10.000 c.25.000 d. 30.000