Question

Kaycee obtains fire insurance on an empty warehouse. Later Kaycee manufactures and stores fireworks in the building. A lightning strike in a thunderstorm explodes the fireworks and destroys the building. The fire insurance policy is:

A. valid since the building was empty when the policy was obtained.

B. void since a material change in risk occurred.

C. voidable if the lightning was not foreseeable.

D. valid since there are negligible liabilities which applies to storing fireworks.

Answer

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