What will an insurer do if a loss occurs under an insurance binder before a policy has been issued? OA) The insurer will pay the claim in accordance with the coverages bound. OB) The insurer will take no action until a policy is issued. OC) The insurer will demand that the broker pay the loss. OD) The insurer will cancel the binder by registered letter and deny liability.
What will an insurer do if a loss occurs under an insurance binder before a policy has been issued? OA) The insurer will pay the claim in accordance with the coverages bound. OB) The insurer will take no action until a policy is issued. OC) The insurer will demand that the broker pay the loss. OD) The insurer will cancel the binder by registered letter and deny liability.
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Transcribed Image Text:What will an insurer do if a loss occurs under an insurance binder before a policy has been issued?
OA) The insurer will pay the claim in accordance with the coverages bound.
OB) The insurer will take no action until a policy is issued.
OC) The insurer will demand that the broker pay the loss.
OD) The insurer will cancel the binder by registered letter and deny liability.
Transcribed Image Text:A person insured under a property policy goes bankrupt and sustains a loss covered by the policy shortly afterwards.
Which one (1) of the following statements describes the legal situation that exists?
OA) The policy is void because the insured is bankrupt.
OB) The insurer is liable to pay the loss to the trustee in bankruptcy.
OC) Bankruptcy is considered a material change to the risk and the policy is therefore void.
OD) The loss would be paid by the Trustee in Bankruptcy.
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