Ch. 27 HW Answers

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

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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.
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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 suretys 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....
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