Hank bought a farm that had an old barn. He noticed one day that ...

[moongchi]

Hank bought a farm that had an old barn. He noticed one day that the roof of the barn was swaying in the wind. Hank went to see his insurance agent and he insured the barn for 20,000.
 
  The agent didn't ask if the roof might collapse, and Hank didn't say anything about it. One week later there was a strong wind and the roof collapsed. Assuming the insurer can prove it, under what legal grounds could the insurer deny payment of the claim?
  A) estoppel
  B) concealment
  C) warranty
  D) misrepresentation

Question 2

ABC Life Insurance Company insures both smokers and nonsmokers. Beth lied on her life insurance application, checking the box for no in response to the question of whether she smokes cigarettes or uses other tobacco products.
 
  Even though Beth smokes 10 to 15 cigarettes each day, the policy was issued at the preferred nonsmoker rate. Beth's lie is materiel in this case because
  A) it was in writing on the application.
  B) it was given with the intent to deceive.
  C) the policy would have been issued on different terms if the insurer knew the true facts.
  D) the policy would have been issued for a lower face value if the insurer knew the true facts.

[emsimon14]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: C

[moongchi]

TYSM

[meow1234]

Gracias!