Commercial Law, 2012 Bar — Question 40

MULTIPLE CHOICE

When X insured his building, X indicated in the application that it is a residential building, but actually the building was being used as a warehouse for some hazardous materials. What is the effect on the insurance policy, if any? A) The insurance policy can be cancelled because of the change in the use. B) The insurance policy will automatically be changed. C) The insurance policy need not be changed. D) The insurance policy is fixed regardless of the change in the use.

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