Gamma Ltd Owns a Widget

question 19

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)Gamma Ltd failed to pay a premium worth $5000.
• B)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.
• C)Atlantic Insurance Co claims that Gamma Ltd is entitled to receive $70 000.
• D)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.
• E)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.

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Definitions:

Genetic Engineering

The manipulation of an organism's genes using biotechnology, often involving the transfer of specific traits, or genes, from one organism or species to another to improve or change characteristics.

Pest-resistant

Refers to plants that have developed or been genetically modified to resist pests, reducing the need for chemical pesticides.

Disease-resistant

The ability of an organism to prevent infection or resist the effects of disease-causing pathogens through natural or genetically modified traits.

Chemical Pesticides

Substances used to kill or control the population of pests that can harm crops, animals, and humans, made from synthetic chemicals.