Zelig Owns a Widget Worth $25 000

question 5

Multiple Choice

Zelig owns a widget worth $25 000. He purchased property insurance from Superior Insurance Co. The widget was irreparably damaged as a result of an accident that was caused by Zoe. Zoe has a liability insurance policy from Erie Insurance Co. Which of the following statements is TRUE?

• A) Zelig cannot claim a benefit from Superior Insurance Co unless Zoe caused the accident in a way that exposed her to liability in tort.
• B) If Superior Insurance Co pays a benefit to Zelig, it will be entitled to exercise subrogated rights against Zoe.
• C) If it is required to pay a benefit of $25 000 to Zelig, Superior Insurance Co can claim the same amount of money from Erie Insurance Co even if Zoe could not be held liable to Zelig for damaging the widget.
• D) The concept of subrogation means that if Zelig successfully sues Zoe in tort, she will be able to claim a benefit from Superior Insurance Co.
• E) If Superior Insurance Co sues Zoe, it will do so on the basis of the concept of contribution.

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Definitions:

Paul Ekman

A psychologist renowned for his research on the universality of facial expressions and the identification of emotions.

Facial Expressions

Observable movements of the facial muscles that convey an individual's emotional state or reactions.

Cross-cultural Study

Research that compares the cultural practices, products, or attitudes of two or more cultures to understand their similarities or differences.

Problem-solving Ability

The capacity or skill to identify, define, and find solutions for complex or challenging situations or questions.