Question

Mary intentionally trips her neighbor while the neighbor is trespassing on the insured's property. Although the neighbor is not injured, Mary gives the neighbor $500 in cash to settle any potential liability claim. How will Mary's insurance company most likely respond in this situation?

A. The insurer will reimburse Mary for the entire $500.
B. The insurer will reimburse Mary for $500, less any applicable deductible.
C. The insurer will sue the neighbor for the return of the $500 because the neighbor was not injured.
D. The insurer will deny liability coverage because Mary’s action was intentional.

Answer 1

Answer:

D

Explanation:

Dubious or intentional practices are prohibited in insurance firms.

Mary exhibited a deceptive act to benefit from the insurance, hence the company will deny any liability coverage and refute the claim.

The only exception to this rule is when the insured is attempting to use reasonable force to protect themselves or their property as in the case of threats or risk of harm