Chapter 1 Section 2 Part 3

Question 1

Statutory Conditions applicable to contracts 1-4

Answer 1

1. Misrepresentation (red, white, poka dot bun)
2. Property of others (dirty old shoe)
3. Change of interest (tree sprouting brilliant pink flowers)
4. Material Change (door turned into cheese)

Question 2

Statutory Conditions applicable to contracts 5-8

Answer 2

5. Termination (terminators behind hive)
6. Requirements After Loss (to cross the river Styx
7. Fraud (there’s only one heaven…)
8. Who may give notice and proof (those who can and cannot pass through the gate)

Question 3

Statutory Conditions applicable to contracts 9-12

Answer 3

9. Salvage (climbing a vine into building to salvage)
10. Entry, Control, Abandonment (Military hen entering, controlling, then abandoning)
11. Appraisal (is this leavened bread good enough?)
12. When loss is payable (stacks of money on a shelf)

Question 4

Statutory Conditions applicable to contracts 13-15

Answer 4

13. Replacement (Queen bird with huge glittering crown pushing another bird to their death)
14. Action (Floor falling in on itself)
15. Notice (Guy throwing cream at a lady)

Question 5

3 forms of Misrepresentation

Answer 5

• Property, False Description (to prejudice of insurer)
• Material Fact, Misrepresentation
• Material Fact, Fraudulent Ommision

Question 6

Effect of Misrepresentation on a Contract (+example)

Answer 6

directly linked w loss = void (heating unit)

Question 7

three things material facts effect in a contract

Answer 7

issued (y/n)
premium $
conditions (if any)

Question 8

three things which might be considered material facts

Answer 8

details concerning previous…

• claims
• cancellations
• refusals of (insurance)

Question 9

change of interest (generally not allowed in fire contracts) > situations where would be allowed, four

Answer 9

- bankruptcy act (authorized assignment under)
change of title by:
- succession (?)
- operation of law (?)
- death

Question 10

Material Change > Any change with control, knowledge of insured which..? (2)

Answer 10

• Arises after policy issued

- Increases chance of loss

Question 11

Material Change > When reported to insurer, insurer may…? (2)

Answer 11

• Cancel policy, Return Unearned Premium

- Retain risk, Advise Insureds (in writing of additional premium required)