Business Law Today Study Set 1
Quiz 38 :
Insurance, Wills, and Trusts U
No, the sequence of the movie and the digital video does not belong to Dave because he signed a contract stating that the all his rights regarding the sequence and digital video belongs to Hollywood and not him. Dave has entered into a contract whereby he has agreed upon some clauses and conditions of the company. As per those clauses, Terms and conditions, Dave does not have any right in the sequence of the movie and the digital video. All the statutory formalities that are designed must be fulfilled. If Dave would not follow all the formalities, the contract would be declared as void.
The meaning of an insurable interest is that the holder of a policy should bear the entire financial loss when the event takes place. Insurable interest should take place when the insurance is purchased.it even exist when the loss is occurred. The insurance transactions are made possible by the insurable interest. Direct relationship, ownership and possession help in establishing insurable interest. When any person who is insured gets any kind of financial benefits from the existence of object that is insured, then insurable interest exists.
Person JV applied for a life insurance policy of $50,000 and made her husband J the beneficiary. After two days she was killed in an automobile accident before giving the physical examination. However, she had already paid her first year's premium. It needs to be determined whether her husband can claim the insurance. The general principles guiding common law is also applicable in an insurance contract. However, insurance policy of each state might differ. An insurance contract would become binding if the person applying for the insurance have paid the premium as consideration and both the parties have the required contractual capacity. In this case, Person JV has already paid the first year's premium for the contract. However, she had not given the medical examination. The policy was also not issued by the insurance company. In this case, if the insurance company would have imposed some conditional acceptance on the insurance like medical examination, then J cannot collect the insurance benefit.