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Peter Patholopoly Has a Fire Insurance Policy on His Home

Question 15

Multiple Choice

Peter Patholopoly has a fire insurance policy on his home with Earnest Insurance Co.Which of the following is least likely to represent grounds on which Earnest Insurance might cancel the policy on the grounds of a failure to comply with the duty of utmost good faith?


A) Peter failed to disclose that he has a secret compulsion for which he is receiving psychotherapy.For reasons he cannot explain he enjoys using tea candles to light many little fires on his living room carpet at night in order to watch the flames and then snuff them out.
B) Peter failed to disclose that as a youth he liked to build Tessla coils, create bombs, shoot cane toads, and set fire to things.
C) Peter failed to disclose that he entered into the policy with the intention of setting fire to his home and collecting the insurance money.
D) Peter failed to disclose that his hoarding habits are such that he was featured on the television show Hoarders.During the screening of the show, the presenters found the decomposed remains of three cats in his lounge room that had evidently died quietly after being trapped under the five meter high piles of old newspapers.

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