Question

Jacob sold his house to Shelia for $140,000 in cash. Jacob "threw in" insurance on the house as part of the deal and did not bother telling the insurer that there was a new owner. Four months after Shelia purchased the home, a windstorm damaged the roof. Which of the following legal characteristics of insurance contracts could the insurer use to legally deny payment to Shelia for the damage to the roof?
a. Insurance contracts are unilateral contracts.
b. Insurance contacts are contracts of adhesion.
c. Insurance contracts are aleatory contracts.
d. Insurance contracts are personal contracts.

Answer 1

Answer:

d. Insurance contracts are personal contracts.

Explanation:

Since in the question it is given that the Jacob sold his house to Shelia for $140,000 and at the time of insurance he did not tell about the new owner

So after four months, the sheila purchased the house, and due to windstorm, the roof got damaged

Since at the time of insurance he did not told about the new owner due to which the insurer refused to deny the payment to Sheila and that could be considered as a legal.

So, this situation is considered to be a personal contract