Reference no: EM132509703

Bander purchased a new car worth $40,000. He obtained a $30,000 loan from the AUTO Bank to buy the car. Usually he parks his car in guarded places-during work hours he parks it in the company's underground garage; and at night he parks it in his garage located in his house. One day, after the work he noticed something unexpected: a "drawing" on his car's bonnet. Unfortunately, it was made by a nail. The cost of the car's renovation was valued at $2,000. He reported this case to the police and to his insurer, because acts of vandalism were included in his auto insurance. After a short investigation, with the help of monitoring devices installed in the company garage, the police identified the perpetrator to be Jahil, one of Bander's co-workers.

a) Does any of the following parties have an insurable interest in the car at the time of loss? Explain your answer for each.

-Bander

-Jahil

-AUTO Bank

-Bander's company (the owner of the garage)b) Which of the parties (Jahil, Bander's company, or Bander's insurer) should Bander claim for compensation? Explain your answer.

c) Could Bander's insurer use the right of subrogation after paying the compensation to Bander? Explain your answer.