Kevin purchased a gift shop from Jeff. While seeking insurance for his store, Kevin failed to reveal plans to build a small café with a kitchen. An electrician improperly wired an outlet, which resulted in a fire. Kevin subsequently files a claim with the insurer. Which of the following is FALSE?
A. The insurer can deny the claim on the grounds of material concealment
. B. If the insurer pays Kevin’s claim then they have the right to subrogate against the electrician.
C. The insurer can deny Kevin’s claim if he directly files a lawsuit against the electrician
. D. The insurer will always deny the claim as the contract is automatically voided due to concealment.
A. The insurer can deny the claim on the grounds of material concealment
The insurer can actually deny any claim based on the fact that Kevin was hiding certain facts about the contract and his course of action regarding the same as well. The insurer has the ability to take actions by denying any claim based on the same.
Kevin purchased a gift shop from Jeff. While seeking insurance for his store, Kevin failed to...