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RIL-Assignment 1 - Jingya Wu RIL 211 Assignment 1 Pg...

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Jingya Wu RIL 211 Assignment 1 Pg. 190-191 Application Questions 1. a. (1) Gateway Bank: have insurable interest in Jake or his property. It is because Jake uses the fishing boat to earn income by fishing. If Jake or his property is gone, the bank cannot get money back which loaned to Jake. Hence, the bank can lose financially. (2) Harbor Company: no insurable interest in Jake or his property (3) White Shark Fishing Company: no insurable interest in Jake or his property b. No. Under this condition, the boat is not his property. If the boat is broken or something, there is no loss for Jake. Jake may be assigned another boat for fishing and earning money. 2. $3000. According to principle of indemnity, how much Ashley collect is based on cash value of the damaged property at the time of loss, so the equation: Actual cash value= Replacement (at the time of loss)-Depreciation (at the time of loss) = $6000 - $6000*50% = $3000 3. a. based on the actual value rule: Actual cash value= Replacement (at the time of loss)-Depreciation (at the time of loss) = $240,000 - $240,000*(20/80) = $180,000 b. based on valued policy, Taylor should only be paid the face amount of insurance,
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