Author Question: Robin plans to open a bar in a high-crime area. She had difficulty obtaining insurance for the ... (Read 43 times)

MGLQZ · **on:** Jul 11, 2018

Robin plans to open a bar in a high-crime area. She had difficulty obtaining insurance for the business.

She found an insurer willing to write the coverage, but only if Robin agreed to have a security alarm system in operation at all times when the business is closed. Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a
A) binder.
B) warranty.
C) waiver.
D) deductible.

Question 2

Jacob sold his house to Shelia for 140,000 in cash. Jacob threw in insurance on the house as part of the deal and did not bother telling the insurer that there was a new owner.

Four months after Shelia purchased the home, a windstorm damaged the roof. Which of the following legal characteristics of insurance contracts could the insurer use to legally deny payment for the damage to the roof?
A) Insurance contracts are unilateral contracts.
B) Insurance contacts are contracts of adhesion.
C) Insurance contracts are aleatory contracts.
D) Insurance contracts are personal contracts.