Question

Jake borrowed $800,000 from the Gateway Bank to purchase a fishing boat. He keeps the boat at a dock owned by the Harbor Company. He uses the boat to earn income by fishing. Jake also has a contract with the White Shark Fishing Company to transport tuna from one port to another. a. Do any of the following parties have an insurable interest in Jake or his property.

(1) Gateway bank
(2) Harbour Company
(3) White shark fishing company

Answer 1

Step-by-step explanation:

( 1 ) The gateway Bank -

It has an insurable interest in the boat due to its serves as collateral for the loan .

Hence , The gateway Bank , has an amount of $800,000 , as an insurable interest .

( 2 ) Harbor Company -

It too have an insurable interest in the property ,

As, Harbor company being a bailee , so , there is a possible legal liability if Jake is neglected as docking the boat .

Even , it would lose rental income , if the boat gets destructed . Hence , the loss of the rental income would support insurable interest . '

( 3 ) White shark fishing Company -

It too have an insurable interest in the property ,

Jake as the company's agent , and his negligence can be imputed to the Company .

Hence , potential legal liability for a negligent act by Jake would support insurable interest .