Mrs. Barker has a poodle that she loves very much. The poor little dog is killed in a house fire, and Mrs. Barker asks her homeowners insurance company to pay $100,000 for the loss of the dog. The insurer denies the claim
On what grounds would it be able to do this?
A) Too much moral hazard potential exists with the loss of pets.
B) It's impossible to measure, economically, the value of a beloved pet.
C) Animals are never insurable items.
D) The insurer could not legally deny the claim.
B
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A fire destroyed the home next door to Brad's home. The fire department chief was concerned that the damaged home would collapse on to Brad's home, so he ordered Brad to evacuate his home
Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order? A) The cost of the hotel room is not covered, as Brad's home was not directly damaged. B) The cost of the hotel room is covered under the "fair rental value" coverage of Part D. C) The cost of the hotel room is covered under the "prohibited use" coverage of Part D. D) The cost of the hotel room is covered under the dwelling coverage of Part A.
When fraud occurs, the most common reaction to those affected by the fraud is:
a. Anger b. Acceptance c. Denial d. Retribution