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Andre Insured His Automobile Against Theft Under a Policy of Insurance

Question 40

True/False

Andre insured his automobile against theft under a policy of insurance. Shortly after he had insured the vehicle, he found himself short of cash, and offered to sell the vehicle to his friend for $500 if his friend would dismantle it for parts. Andre did not tell his friend that he intended to claim that the car had been stolen. His friend bought the car for $500 and dismantled it. The insurer may claim the parts of Andre's automobile if it later discovers that the parts are in the possession of Andre's friend.

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