In Which One of the Following Would Joe Be Able

question 2

Multiple Choice

In which one of the following would Joe be able to collect the entire amount of insurance claimed?

• A) Joe insured his law partner's life for $500,000 and the amount he actually lost when the partner died was only $100,000. Joe claims $500,000.
• B) Joe's house suffers $20,000 damage, and he only had it insured for $100,000, when the actual value was over $250,000. Joe claims $20,000.
• C) Joe owns a one-half interest in a house valued at $100,000 that is completely destroyed in a fire. The house is insured for that amount and Joe makes a claim for $100,000.
• D) Joe insured the club house of a Hell's Angels motorcycle club located in the next block for $75,000; the house is valued at about that amount. The club house is subsequently destroyed in a fire. Joe claims $75,000.
• E) Joe took out a life insurance policy on his wife for $500,000, and shortly thereafter, during a fight when he was in a drunken rage, he struck his wife, causing her death. Joe claims $500,000.

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Definitions:

Peers

Individuals who are at the same level or rank in an organization or in the context of a particular situation.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws.

Financial Misconduct

Unethical or illegal handling of financial affairs, typically involving fraud, embezzlement, or misappropriation of funds.

Corporate Executives

Senior management officials within a corporation responsible for making major decisions and overseeing the company's operations.