I need some help here… The question is
Hans sells his car to Pieter and now has no car and no need of auto insurance. Hans calls his State Farm agent to tell him to transfer his auto insurance to Pieter. The agent tells Hans:
A. The transfer will not take place until that night at 12:01 AM
B. That Hans will need to put Pieter on his policy as an additional driver
C. That Hans must keep paying the premium until the end of the policy period.
D. That he cannot transfer the policy to Pieter.
E. None of the above.
Im pretty sure B and C are incorrect, but otherwise I have no clue. Any help would be greatly appreciated!
D is the answer, you cannot transfer a policy of a car that is no longer yours. The policy gets canceled and now Pieter needs to buy a new one.
Most likely Hans cannot transfer the policy to Pieter. He will have to apply for his own policy so I’d say that D is incorrect. If it cannot be transferred, that would make A incorrect also.
My guess would be E. None of the above.
If I was Hans, though, I’d make sure the Pieter had transferred the ownership of the car before I cancelled the insurance policy, especially if there’s still a loan on it. I’d also check with the loan company if that was the case.
D. Hans;s policy gets cancelled. Peter has to buy his own policy.
Auto insurance policies are NOT transferrable. D.
The answer is definately D same reasons as stated above.