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Unformatted text preview: Tracey. How much of the $200,000 does the insurer keep and what happens to any subrogation funds not kept by the insurer? Explain your answer. (3 points) [2 sentences] 2. Donald owns a $4,000,000 building in NY and pays the entire premium for the property insurance on January 1, 2009. On March 15, 2009, Donald sells the building to Warren but Donald forgets to cancel his property insurance. On July 4, 2009, the building is destroyed in a fire. a. Donald makes a property insurance claim. Will his property insurer pay the claim? Explain your answer using an insurance contract principle. (2 points) [2 sentences] b. Name the violation of a characteristic/requirement of an insurable risk this principle is mitigating and explain how the principle mitigates this violation. (2 points) [2 sentences] You will hand this in as a separate assignment from HW #8. Do not staple this to HW #8. We will collect HW #8 and HW #9 separately on Tuesday. 1...
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- Spring '11