Question

John and Jane Doe were married for 20. When they were first married, John, as beneficiary, bought a life insurance policy on Jane. Jane likewise bought a life insurance policy on John. After their youngest child went off to college, John and Jane got a divorce. Both were working professionals, so no spousal support was awarded in the divorce. Immediately after the divorce, John purchased a house in a beautiful neighborhood. He was a little worried that him and his neighbor were in a flood zone. Just to be cautious, John bought property insurance policies, with him as the beneficiary, for his house and his neighbor's house. After the divorce, Jane moved to California. Considering the number of wildfires in California, Jane bought fire insurance on her home. One year later there was a flood and John and his neighbor suffered massive losses on their properties.

What would happen when John tried to collect on both property insurance policies?
Two weeks after that, there was a wildfire near Jane's house.
The wildfire caused a tree to fall, which broke a water line, that caused Jane's house to flood.
She suffered massive damage to her house.
What would happen when Jane tried to collect on her fire insurance policy? Four weeks later, John died of a heart attack.
What would happen when Jane tried to collect the life insurance policy?

Answer 1

Answer: The answers are provided below

Step-by-step explanation:

Question 1: What would happen when John tried to collect on both property insurance policies?

It is possible for John to claim insurance against losses that were incurred as a result of floods on his own property. In the case of claiming for his neighbor, he can't claim for the loss his neighbor incurred.

Question 2: What would happen when Jane tried to collect on her fire insurance policy?

Jane can claim for losses that were incurred to her house in California as a result of the damage caused by the fire. She has the fire insurance policy document and should tender it to make her claim.

Question 3: What would happen when Jane tried to collect the life insurance policy?

John bought the life insurance policy when he married Jane. John assigned Jane as the beneficiary in case he died. Since Jane is the beneficiary, she can collect the life insurance policy.