A Wants to Buy a Building to Use as a Warehouse.A

question 32

Multiple Choice

A wants to buy a building to use as a warehouse.A has seen the building he wants to buy and knows the purchase price is $500 000.00.A calls his agent and tells him he wants immediate insurance on the building.He gives him all the particulars and tells him to insure the building for $500 000.00,which the agent proceeds to do.After a month of negotiations,A finally enters into an agreement of purchase and sale,and two weeks later he becomes the owner of the building.A half a year later,the building is badly damaged by fire.In this case

• A)A has no coverage under the policy because it is void,since A had no insurable interest in the building at the time the insurance policy was taken.
• B)A has no coverage for damage caused by fire because he did not comply with the disclosure requirements of the insurance company.
• C)A's coverage under the policy began when A became the owner of the building,and the insurance company will pay for the damage to the building.
• D)A's coverage under the policy began when A entered into the agreement of purchase and sale for the building,and the insurance company will pay for the damage to the building.
• E)A's coverage under the policy began when he called his agent,and the insurance company will pay for the damage to the building.

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Definitions:

Diplomatic Proposals

Suggestions or plans made in the interest of promoting or achieving international peace and cooperation between countries.

Reconcentration Policy

A strategy used by the Spanish military in Cuba during the late 19th century to combat the Cuban independence movement by forcibly relocating rural populations into concentration camps.

Naval Expansion

The process by which a country increases the size and capability of its navy, often to enhance its military strength, protect its maritime interests, and assert its power on a global scale.

Local Support

Assistance or backing provided by the community or nearby entities in a specific geographical area.