Jones Bought Insurance on a House When It Was Being

question 21

Multiple Choice

Jones bought insurance on a house when it was being used as his residential dwelling. He subsequently rented out the building to three members of a motorcycle gang. The insurance company was not notified of the change. What would be the result if the house is destroyed by fire?

• A) The failure to notify of the change would void the policy and the insurance company would not have to pay.
• B) The failure to notify of the change would void the policy, but the insurance company would still have to cover the loss.
• C) The failure to notify of the change was immaterial, because there was no proof that is what caused the fire.
• D) The failure to notify of the change was immaterial, because there was no misrepresentation at the time the policy was taken out.
• E) The failure to notify of the change resulted in the insured being charged higher premiums.

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Definitions:

Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotional responses.

Spinal Cord

The spinal cord is a long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem to the lower back, serving as a major conduit for information traveling between the brain and the body.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body to other neurons, glands, or muscles.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.