Question

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can:________.
a. only recover the amount of the premiums paid.
b. enforce the policy or recover the amount of the premiums paid.
c. only enforce the policy.
d. do nothing with respect to the policy.

Answer 1

Answer:

b. enforce the policy or recover the amount of the premiums paid.

Explanation:

Petra being a a member of the class of persons protected by the statute is a big advantage. This translates to lesser or no punishments at all for defaulting the set rules and protocols of insurance in his/her state.

This means Petra can either enforce the law as a top person or recover the amount of premiums paid.