question archive Jeff is a book dealer who purchased a building from Richard
Jeff is a book dealer who purchased a building from Richard
Subject:FinancePrice:2.86 Bought9
Jeff is a book dealer who purchased a building from Richard. Jeff obtained a loan from the Gateway Bank to purchase the building, which held a mortgage on the building. Jeff planned to store his inventory of books in the building. He also planned to use part of the building for a fast-food restaurant. When Jeff applied for property insurance on the building, he did not tell the agent about the fast-food restaurant because premiums would be substantially higher. Eight months after the policy was issued, a fire occurred in the restaurant that caused substantial damage to the building.
Is Jeff has an insurable interest even he is lying to the insurer?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
YES, Jeff will be having an insurable interest even if he is lying to the insurer because he will be exposed to the loss related to full value of the building and hence he will have an entitlement to full value of building.
Jeff will be having an insurable interest to full value of building because any kind of financial loss will be directly impacting him.
