Omni Insurance Company violates a state licensing statute when selling a policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can
A) do nothing with respect to the policy.
B) enforce the policy or recover the amount of the premiums paid.
C) only enforce the policy.
D) only recover the amount of the premiums paid.

Question

Omni Insurance Company violates a state licensing statute when selling a policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can​
A) ​do nothing with respect to the policy.
B) ​enforce the policy or recover the amount of the premiums paid.
C) ​only enforce the policy.
D) ​only recover the amount of the premiums paid.

Quizplus · Accepted Answer

Petra can enforce the policy or recover the amount of the premiums paid as she is a member of the class of persons protected by the licensing statute. The statute aims to protect consumers from unlicensed insurers, and therefore Petra has legal standing to seek redress.

Omni Insurance Company Violates a State Licensing Statute When Selling