Gamma Ltd Owns a Widget

question 6

Multiple Choice

Gamma Ltd owns a widget. It purchased property insurance from Atlantic Insurance Co. The widget was recently destroyed by a fire. It was worth $75 000, and it will cost that much to replace it. Both parties agree that that loss falls within the terms of the policy. Nevertheless, a dispute has arisen regarding a $5000 deductible. That most likely means that

• A) the benefit that Gamma Ltd is entitled to receive under the policy will be reduced to the extent that the widget can be sold for scrap material.
• B) Gamma Ltd failed to pay a premium worth $5000.
• C) if Atlantic Insurance Co sues a third party in tort for causing the fire that destroyed the widget, the costs of that litigation will be deducted from the benefit that Gamma Ltd is entitled to receive.
• D) Atlantic Insurance Co claims that the fire was caused by a third party, and that Gamma Ltd must sue that third party in tort instead of claiming a benefit under the policy.
• E) Atlantic Insurance Co claims that Gamma Ltd is entitled to receive $70 000.

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Definitions:

Total Fat

The sum of all types of fats present in food or the diet, including saturated, unsaturated, and trans fats.

Overweight

A condition characterized by having more body weight than is considered normal or healthy for a specific height, often measured by the Body Mass Index (BMI).

Salt Consumption

The intake of sodium chloride as part of one's diet, significant for its impact on health, particularly in relation to blood pressure and heart health.

Daily Number

A specific figure or statistic that is monitored on a daily basis, often used in the context of financial, health, or operational metrics.