In which of the following situations will the insured be able to collect the entire amount of the insurance claimed?
A) Joe owns a house on a lot in Regina, and although the property would sell for $100,000, the value of the house is only $50,000. Joe takes out a $50,000 policy against loss to the house, which is subsequently destroyed by fire. Joe claims $50,000.
B) Joe has his house insured for $100,000 when the actual value of the house is $200,000. When it burns down, Joe claims $200,000.
C) Jane had a compact disc player worth $300. It was portable and it was stolen from her car. She had a house policy and a car policy, both of which provided coverage. Jane claimed $300 from each policy.
D) Joe and his wife both own a one-half interest in their house, worth $100,000. Joe took out an insurance policy in his own name for the $100,000 and the house is destroyed by fire. Joe claims the $100,000.
E) Joe takes out insurance on his neighbour's house for $50,000 because his neighbour is notoriously careless. Sure enough, the house burns down with $50,000 loss.
Correct Answer:
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