Asked by Ethan Berumen on Jul 23, 2024
Verified
Joe had made an agreement with Auto Insurance Co.not to use his van for commercial business purposes when he purchased auto insurance.Joe had an accident while delivering pizzas for Bigger Pizza,Inc.For which type of violation will Joe not be covered under his insurance?
A) Fraudulent concealment
B) Misrepresentation
C) Concealment
D) Breach of warranty
Breach of Warranty
Failure to meet the terms of a promise or guarantee made about the quality or durability of a product or service.
Auto Insurance
A type of insurance policy that covers vehicles and their drivers against potential financial losses related to accidents, theft, or damage.
Commercial Business
An organization engaged in activities aimed at the sale of goods and services to consumers with the goal of earning profit.
- Understand the significance of having an insurable interest and the repercussions of providing false information or violating the terms of insurance contracts.
Verified Answer
JV
Jonissa ValdesJul 29, 2024
Final Answer :
D
Explanation :
Joe breached the warranty that he made with Auto Insurance Co. by using his van for commercial purposes. Therefore, he will not be covered under his insurance for the accident.
Learning Objectives
- Understand the significance of having an insurable interest and the repercussions of providing false information or violating the terms of insurance contracts.