Question

1. James has two fire insurance policies worth 200.000 each to cover his 250.000 house, how much can he collect in total from both policies following a 100.000 fire loss?

a. 100.000

b. 200.000

c. 250.000

d. None of the above

2. Ocean marine insurance typically covers all the following categories of loss, EXCEPT

1. losses caused by ship owner^rs fraud.
2. loss of cargo in a tidal wave
3. loss of ship by pirates.
4. loss of freight.

Answer 1

1. The maximum a person can claim in total even when he has multiple insurance policies is the loss occured. Here, as the loss due to fire is of 100.000 and can claim only that much. This can be explained by the principle of contribution and the principle of indemnity.

Answer- A. 100.000

2. Ocean marine typically covers all the following categories of losses except-

Answer- A. losses caused by ship owners fraud

Let me know in the comment section in case of any doubt.