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When Marnie Arranged Insurance Cover for the Contents of the Home

Question 19

Multiple Choice

When Marnie arranged insurance cover for the contents of the home unit she shares with Rico she did not disclose that she had made two burglary claims in the past five years.Rico had no knowledge of these claims. Six months after Marnie entered the insurance contract their unit was burgled and they lost goods worth $7000.Which of the following statements is most likely to be true?


A) The insurer is obliged to pay Rico compensation for any goods that were solely his property.
B) The insurer is obliged to pay approximately $3500 to Rico.
C) The insurer can avoid paying any compensation.
D) The insurer may deduct the cost of half of the premiums paid by Marnie and Rico.

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