Author Question: Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed ... (Read 45 times)

beccaep · **on:** Jul 11, 2018

Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months.

When she finally reported the claim, her insurer denied payment, stating, Although such a loss is usually covered, you are required under the terms of the contract to provide prompt notification in case of loss. The prompt notification requirement is an example of a(n)
A) declaration.
B) definition.
C) insuring agreement.
D) condition.

Question 2

Lisa has three fire insurance policies on her office building. The policy from company A is for 400,000, and the policies from companies B and C are for 100,000 each.

If Lisa has a 360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?
A) each policy: 120,000
B) policy A: 160,000; policies B and C: 100,000 each
C) policy A: 240,000; policies B and C: 60,000 each
D) policy A: 360,000; policies B and C: nothing