In which one of the following situations would Joe be able to collect the entire amount of insurance claimed?
A) Joe insured the clubhouse of a Hells Angels motorcycle club located in the next block for $75 000; the house is valued at about that amount.The clubhouse is subsequently destroyed in a fire.Joe claims $75 000.
B) Joe owns a one-half interest in a house valued at $1000 that is completely destroyed in a fire.The house is insured for that amount and Joe makes a claim for $100 000.
C) Joe took out a life insurance policy on his wife for $500 000,and shortly thereafter,during a fight that occurred while he was in a drunken rage,he struck his wife,causing her death.Joe claims $500 000.
D) Joe insured his law partner's life for $500 000 and the amount he actually loses when the partner dies is only $1000.Joe claims $500 000.
E) Joe's house suffers $20 000 damage,and he only had it insured for $1000,when the actual value was over $250 000.Joe claims $20 000.
Correct Answer:
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