Frank purchased a $150,000 insurance policy for his home, which is valued at $125,000, with the hopes of making a $25,000 profit in the event his home is destroyed. After Frank burns his house down, he files a claim against his homeowners policy. Assuming that Frank's policy includes an overinsurance provision, how much will his insurer indemnify Frank for his loss?

Answer: $0 By purchasing extra insurance with intentions to defraud the insurer, Frank voided his insurance policy and he will receive nothing.

Insurance Adjuster

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In an insurance contract, the element that shows each party is giving something of value is called

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What is the other term for the cash payment settlement option?
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In an insurance contract, the applicant's "consideration" is the
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The voluntary relinquishment of a legal right is called
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In an insurance contract, the element that shows each party is giving something of value is called

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