Exam 47: Introduction to Property, Property Insurance, Bailments, and Documents of Title

Showplace insures its $160,000 building with two insurers: with Hometown Insurance for $60,000 and with National Insurance for $120,000.The building suffers a fire loss of $75,000.From whom and for how much can Showplace collect?

Mark finds a camera on a park bench at Disneyland.Mark can keep the camera if the true owner cannot be found, because it is lost property.

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

A lease for office space is considered to be personal property.

An insurable interest in property is a financial interest that justifies insuring such property.

The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

The rights of a holder of a negotiable document of title to whom it has been duly negotiated include:

An example of property that is intangible is a:

a.How do you distinguish between tangible and intangible property? b.How do you distinguish between real and personal property?

Sales of tangible personal property involve the transfer of title.

All bills of lading are negotiable and may be transferred like a check.

The basic principles of contract law apply to insurance policies.

Defenses of the insurer include:

Harold says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew.Delivery of the auto has taken place.

Intangible property does not exist in a physical form.

Bailed property must be tangible.

A type of insurance in which the insured and the insurer share a risk of loss due to fire is:

No warranties are given out by the person who negotiates or transfers a document of title.

An inter vivos gift is a gift:

Robert steals a truckload of electronic equipment and stores it in Eastside Warehouse.After five weeks, Robert instructs Eastside to make the goods available to Charles for pickup.Even if Eastside acts reasonably and in good faith, it will be liable to the true owner of the goods if it allows Charles to take the goods.