Wilson Sold a Valuable Coin Collection to Blake

question 25

Essay

Wilson sold a valuable coin collection to Blake. Since the insurance policy on the collection still had two years to run, Wilson turned it over to Blake without notifying the insurance company. A year later, the collection was stolen. Is the insurance company liable for the loss?

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Definitions:

Drawn Originally

Refers to the primary or initial creation or drafting of a document or artifact.

Expedited Funds Availability Act

A United States federal law designed to regulate the amount of time a bank can hold deposited funds before making them available to the depositor.

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and maintenance of financial stability.

Check-Processing Region

An area or zone within the banking system designated for the processing and clearing of checks and other negotiable instruments.