Author Question: Bob purchased insurance on his home with an insurer that was not licensed to do business in the ... (Read 55 times)

xclash · **on:** Jul 11, 2018

Bob purchased insurance on his home with an insurer that was not licensed to do business in the state. In this case, which requirement to form a binding insurance contract is lacking?

A) exchange of consideration
B) offer and acceptance
C) legal purpose
D) competent parties

Question 2

All of the following statements about subrogation are true EXCEPT

A) The general rule allows the insurer to recover up to the amount paid to its insured under the policy.
B) Subrogation does not apply in life insurance.
C) Interfering with the insurer's subrogation rights can jeopardize indemnification of the insured.
D) The insurer reserves the right to subrogate against its own insureds.