Real Property MCQ - Real Property Insurance MC Questions 1 The earliest time a purchaser of existing goods will acquire an insurable interest in

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Real Property & Insurance MC Questions 1. The earliest time a purchaser of existing goods will acquire an insurable interest in those goods is when A. The purchaser obtains possession. B. Title passes to the purchaser. C. Performance of the contract has been completed or substantially completed. D. The goods are identified to the contract. 2. Which of the following statements accurately describes the requirement of insurable interest relating to property insurance? An insurable interest A. Must exist when any loss occurs. B. Is created only when the property is owned by an individual. C. Must exist when the policy is issued and when any loss occurs. D. Is created only when the property is owned in fee simple 3. Bronson is a residential tenant with a 10-year written lease. In the absence of specific provisions in the lease to the contrary, which of the following statements is true? A. Bronson may not assign the lease. B. The landlord’s death will automatically terminate the lease. C. Bronson’s purchase of the property will terminate the lease. D. The premises may not be sublet for less than the full remaining lease term. 4. Jewelry, Inc. took out an insurance policy with Insurance Company that covered the stock of jewelry. Insurance agreed to indemnify for losses due to theft of the jewels displayed. The application contained the following provision: “It is hereby warranted that the maximum value of the jewelry displayed shall not exceed $10,000.” The insurance policy’s coverage was for $8,000. Subsequently, thieves smashed the store window and stole $4,000 worth of jewels when the total value of the display was $12,000. Which of the following is true? A. Jewelry, Inc. will recover nothing. B. Jewelry, Inc. will recover $2,000, the loss less the amount in excess of the $10,000 display limitation. C. Jewelry, Inc. will recover the full $4,000 because attaching the application to the policy is insufficient to make it a part of the policy. D. Jewelry, Inc. will recover the full $4,000 because the warranty will be construed as a mere representation.
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5. Orr is an employee of Vick Corp. Vick relies heavily on Orr’s ability to market Vick’s products and, for that reason, has acquired a $50,000 insurance policy on Orr’s life. Half of the face amount of the policy is payable to Vick, and the other half is payable to Orr’s spouse. Orr dies shortly after the policy is taken out but
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This note was uploaded on 12/06/2009 for the course ACCT REG 5744 taught by Professor Smith during the Spring '09 term at Nova Southeastern University.

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Real Property MCQ - Real Property Insurance MC Questions 1 The earliest time a purchaser of existing goods will acquire an insurable interest in

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