A's building is insured by B Co.under a standard policy that covers all loss occasioned by fire.A's business is not doing well,and A figures that if his building is destroyed by fire,he can put part of the insurance proceeds into his business to keep it running.One evening,A starts a fire in his building that subsequently destroys it.In this case

Question

Quizplus · Accepted Answer

A intentionally started the fire with the intention of benefiting financially from the insurance payout. This is known as arson and is a criminal act. Insurance policies do not cover losses that are intentionally caused by the policyholder, so the insurance company is not obligated to pay the insurance proceeds in this case.

A's Building Is Insured by B Co