Submits an application for homeowners insurance

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Reference no: EM132541434

A broker submits an application for homeowners insurance to an insurance company on behalf of a client. The broker is unaware that although his client is the registered owner of the property to be insured, the insured has neglected to report that the home is being used to house a catering business. This means that the client has failed to disclose information on the insurance application.

a. If you are the underwriter on this risk and it comes to your attention that the insured is operating a catering business from the home, what issues should you consider when you discover the actual facts about the use of the insured home?

Reference no: EM132541434

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