Question

In: Operations Management

Beek’s house was destroyed by fire and claims were filed with the insurance company.

 

Beek’s house was destroyed by fire and claims were filed with the insurance

company. The insurance company (insurer) hired James to investigate the fire as it

was suspicious about the cause. Subsequently, the insurer denied the claims based on

James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a

third party beneficiary of the James-insurer contract. Is Beek correct? If so what

type of beneficiary is he and why?

Solutions

Expert Solution

Beek was not correct in his claim regarding the third party beneficiary for James-insurer contract. If we refer California Civil Code section 1559 then it clearly says that contracts which involves third party intended beneficiaries has to be made for the third party benefit. In this case James is just an agent for the insurance company who is acting as a third party investigator into the case of week. So James in this case is not representing him in any capacity instead of it he is not representing Beek only working for the insurers.

keosha answered 2 years ago
Next > < Previous

Related Solutions

An insurance company issues 1600 vision care insurance policies. The number of claims filed by a...
An insurance company issues 1600 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a Poisson random variable with mean 5. Assume the numbers of claims filed by distinct policyholders are independent of one another. Find the approximate probability that the number of total claims during a one-year period is between 7928 and 8197.
An insurance company issues 1250 vision care insurance policies. The number of claims filed by a...
An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a Poisson random variable with mean 2. Assume the numbers of claims filed by a distinct policyholders are independent of one another. What is the approximate probability that there is a total of between 2450 and 2600 claims during a one year period?
casualty loss, garage was destroyed by fire. Cost and fair market value were. $9000 Insurance pay...
casualty loss, garage was destroyed by fire. Cost and fair market value were. $9000 Insurance pay out for the garage fire is $3,000 Assuming the fire is attributed to a federally declared disaster, what amount will be recorded on the form 4684 and schedule A.
An insurance company states that 15% of all fire insurance claims are fraudulent. Suppose the company is correct, and that it receives 130 claims.
An insurance company states that 15% of all fire insurance claims are fraudulent. Suppose the company is correct, and that it receives 130 claims.What's the probability that at least 15 claims are fraudulent?What's the probability that less than 10 claims are fraudulent?
Cheryl owned a warehouse destroyed by a fire. Her insurance company paid her compensation of $500,000...
Cheryl owned a warehouse destroyed by a fire. Her insurance company paid her compensation of $500,000 for the loss.To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law
An insurance company has determined that each week an average of 9 claims are filed in...
An insurance company has determined that each week an average of 9 claims are filed in its Atlanta branch. What is the probability that during the next week at least 18 claims will be filed? How to solve this problem without Excel? Thanks
The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately,...
The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately, the controller had kept the following statistical data related to the income statement and the balance sheet in addition to the published balance sheet of the year 2017: The beginning merchandise inventory was $92,000 and decreased 20% during the current year. Sales discounts amount to $17,000. Interest expense was $20,000. The income tax is $106,000. Cost of goods sold amounts to $500,000. Administrative expenses...
The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017....
The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017. Fortunately the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $184,000 and decreased 20% during the current year. 2. Sales discounts amount to $34,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $40,000. 5. The income tax rate is 30%. 6. Cost of goods...
The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017....
The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017. Fortunately the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $184,000 and decreased 20% during the current year. 2. Sales discounts amount to $34,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $40,000. 5. The income tax rate is 30%. 6. Cost of goods...
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2017....
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2017. Fortunately, the controller had kept certain statistical data related to the income statement as follows. 1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year. 2. Sales discounts amount to $17,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $20,000. 5. The income tax rate is 30%. 6. Cost of goods sold...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT