Ch. 27 HW Answers

Ch. 27 HW Answers - Obligee The obligee in this case is the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 27 AQ’s 2) A. Since the policy is insured on a discovery basis, the policy will cover the full  20,000$ which was embezzled during 2004. B. There would be no coverage for this loss.  It would not be the same as in part A  even though the crime coverage form was issued on a loss sustained basis. 3) The insurer will be responsible for covering the loss of $5,000 because it was  incurred and discovered during the policy period and they are covered up to $10,000. 4) A.  Principal:  The principle in this case is Vasquez Construction.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Obligee: The obligee in this case is the local school board who would receive the proceeds from the bond if Vasquez fails its obligation as the principle. Surety: The surety is the issuer of the performance bond. B. The surety’s obligation would be to pay the obligee (school board) if the principle fails its obligations. C. The surety would have the right to go after Vazquez Construction in recovering the loss payment....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online