Brown insured his automobile against theft under a policy of insurance.Shortly after he had insured the vehicle,he found himself short of cash,and offered to sell the vehicle to his friend for $500 if his friend would dismantle it for parts.Brown did not tell his friend that he intended to claim that the car had been stolen.His friend bought the car for $500,and dismantled it.
-The insurer may claim the parts of Brown's automobile if it later discovers that the parts are in the possession of Brown's friend.

Question

Quizplus · Accepted Answer

The insurer cannot claim the parts from Brown's friend because the sale was legitimate, and the friend was unaware of Brown's fraudulent intentions. The friend acted in good faith, and the insurer's claim would be against Brown for insurance fraud, not the friend.

Brown Insured His Automobile Against Theft Under a Policy of Insurance.Shortly