Biology Forums - Study Force

A wants to buy a building to use as a warehouse. A has seen the building he wants to buy and knows the purchase price is $500 000.00. A calls his agent and tells him he wants immediate insurance on the building. He gives him all the particulars and tells him to insure the building for $500 000.00, which the agent proceeds to do. After a month of negotiations, A finally enters into an agreement of purchase and sale, and two weeks later he becomes the owner of the building. A half a year later, the building is badly damaged by fire. In this case,
a. A has no coverage under the policy because it is void, since A had no insurable interest in the building at the time the insurance policy was taken.
b. A has no coverage for damage caused by fire because he did not comply with the disclosure requirements of the insurance company.
c. A's coverage under the policy began when A became the owner of the building, and the insurance company will pay for the damage to the building.
d. A's coverage under the policy began when A entered into the agreement of purchase and sale for the building, and the insurance company will pay for the damage to the building.
e. A's coverage under the policy began when he called his agent, and the insurance company will pay for the damage to the building.

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