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EquipLease Company Pays a Premium to Federated Insurance Inc

Question 21

Multiple Choice

EquipLease Company pays a premium to Federated Insurance Inc. for fire insurance against the loss of EquipLease's offices, warehouse, and storage center. After EquipLease sells the facilities to Great State Trucking, Inc., the warehouse is lost in a fire. Under the policy, Federated must pay


A) neither EquipLease nor Great State.
B) EquipLease and Great State proportionately.
C) EquipLease only.
D) Great State only.

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