When Marnie Arranged Insurance Cover for the Contents of the Home

question 15

Multiple Choice

When Marnie arranged insurance cover for the contents of the home unit she shares with Rico she did not disclose that she had made two burglary claims in the past five years.Rico had no knowledge of these claims. Six months after Marnie entered the insurance contract their unit was burgled and they lost goods worth $7000.Which of the following statements is most likely to be true?

• A)The insurer is obliged to pay Rico compensation for any goods that were solely his property.
• B)The insurer is obliged to pay approximately $3500 to Rico.
• C)The insurer can avoid paying any compensation.
• D)The insurer may deduct the cost of half of the premiums paid by Marnie and Rico.

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Definitions:

External Source

An origin of information or materials that lies outside the organization or study in question.

Information Search

The phase in the buying process where consumers actively seek out information about products or services to fulfill a need or desire.

Hybrid Vehicle

A vehicle that uses a combination of an internal combustion engine and one or more electric motors to improve fuel efficiency and reduce emissions.

Lithium-Ion Battery

A type of rechargeable battery commonly used in portable electronics and electric vehicles, known for its high energy density.