Hank bought a farm that had an old barn. He noticed one day that the roof of the barn was swaying in the wind. Hank went to see his insurance agent and he insured the barn for $20,000
The agent didn't ask if the roof might collapse, and Hank didn't say anything about it. One week later there was a strong wind and the roof collapsed. Assuming the insurer can prove it, under what legal grounds could the insurer deny payment of the claim?
A) estoppel
B) concealment
C) warranty
D) misrepresentation
Answer: B
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A. not change; decrease B. increase; also increase C. decrease; also decrease D. increase; not change
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