CAIB 1 CH1 (Discussion Questions) with 100% Correct Answers 100% Pass

CAIB 1 CH1 (Discussion Questions) with 100% Correct Answers 100% Pass A broker friend told you that she recently sold a Tenants' Package Policy to a 16 year old who was attending university. It is your understanding that minors cannot enter into contracts for things not deemed to be the "necessities of life." What position does the law take regarding the enforceability of insurance contracts entered into by minors? - Answer- The law recognizes that such persons are not entitled to enter into certain contracts. However, when they do, their right to void the contract because of their status as a minor is forfeited after a reasonable length of time. Indicate whether the following persons would have an insurable interest in the property owned by your client. Mortgagee - Answer- Yes Indicate whether the following persons would have an insurable interest in the property owned by your client. Next Door neighbor - Answer- No Indicate whether the following persons would have an insurable interest in the property owned by your client. Owners of local storage warehouse at which insured property is being stored - Answer- Yes The Statutory Conditions outline the duties and responsibilities of both the insured and insurer in a contract of insurance. Explain the responsibility of the insurer in the following claims: a. In their application for insurance, the insureds stated they had no claims during the previous three years. This week they made a $7,200 claim for a theft loss. On checking with their previous insurer, the insurer discovered they had four thefts