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:

Medical Services

Services provided by professionals in the healthcare sector, aimed at maintaining or improving individuals' health.

Oral Contract

An agreement that is made verbally and not committed to a written document, though still legally binding under many jurisdictions.

Writing

The representation of language in a textual medium through the use of a set of signs or symbols.

Oral Contract

A verbal agreement between parties that is legally binding, though more difficult to prove than a written contract.