A broker submits an application for homeowners insurance to an
insurance company on behalf of a client. The broker is unaware
that although his client is the registered owner of the property to be
insured, the insured has neglected to report that the home is being
used to house a catering business. This means that the client has
failed to disclose information on the insurance application.
(a) If you are the underwriter on this risk and it comes to your
attention that the insured is operating a catering business from
the home, what issues should you consider when you discover
the actual facts about the use of the insured home?
Answers: 1
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A broker submits an application for homeowners insurance to an
insurance company on behalf of a cli...
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