Hank bought a farm that had an old barn. He noticed one day that the roof of the barn was swaying in the wind. Hank went to see his insurance agent and he insured the barn for $20,000. The agent didn't ask if the roof might collapse, and Hank didn't say anything about it. One week later there was a strong wind and the roof collapsed. Assuming the insurer can prove it, under what legal grounds could the insurer deny payment of the claim?

A) estoppel

B) concealment

C) warranty

D) misrepresentation

Question

Business

Leland Pope

10 November, 22:01

Hank bought a farm that had an old barn. He noticed one day that the roof of the barn was swaying in the wind. Hank went to see his insurance agent and he insured the barn for $20,000. The agent didn't ask if the roof might collapse, and Hank didn't say anything about it. One week later there was a strong wind and the roof collapsed. Assuming the insurer can prove it, under what legal grounds could the insurer deny payment of the claim?

A) estoppel

B) concealment

C) warranty

D) misrepresentation

+5

Answers (1)

Know the Answer?

German Lynch · Answer 1

B. Concealment

Explanation:

Concealment is the act of hiding information or keeping information that might be regarded as a relevant fact in relation to what is being insured from the insurer.

When an insured hide information that may affect the policy bought from the insurance company.

The concealment can be done intentionally or unintentionally by the insured