Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Insurance
New Topic  
chouri chouri
wrote...
Go to Answer
Posts: 639
Rep: 0 0
6 years ago
Ted purchased a home. To finance the purchase, he borrowed $140,000 from ABC Bank, pledging the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the mortgage each month. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled?
A) The insurer has no liability because the loss was intentional.
B) The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded.
C) The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interest.
D) The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted.
Textbook 
Principles of Risk Management and Insurance

Principles of Risk Management and Insurance


Edition: 12th
Authors:
Read 96 times
2 Replies
Replies
Answer verified by a subject expert
ownzore3ownzore3
wrote...
#1
Top Poster
Posts: 554
Rep: 5 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

chouri Author
wrote...
#2
5 years ago
You simplify the concept to an unimaginable degree that it should be illegal Grinning Face with Smiling Eyes
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1255 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 359
  
 280
  
 74
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: What percentage of nature vs. nurture dictates human intelligence?