While having dinner with Judy, Cindy overhears George, a classmate she barely re
ID: 382925 • Letter: W
Question
While having dinner with Judy, Cindy overhears George, a classmate she barely recognizes who happens to be sitting at the next table, mention that he is going to Ouray, Colorado, to do some ice climbing over the winter break. After George leaves, Cindy starts laughing and mentions to Judy that George has a reputation as a complete klutz. Judy works as a receptionist for an insurance agent and she jokes that someone really ought to take out a policy on George right away since they could get rich. Cindy decides this is a good idea and calls Judy the next day and purchases a $100,000.00 life insurance policy on George. George’s ice climbing expedition goes off without a hitch but on the last day of his trip he decides to go skiing and is killed when he crashes into a snowmobile while careening down the mountain at breakneck pace and completely out of control. The snowmobile he hit had been left in the middle of the slope by a careless ski resort worker. Back at school, Cindy hears the news and immediately files a claim. The insurance company refuses to pay.
Cindy will be awarded the $100,000.00, but only if she mentioned the skiing accident to the agent.
Cindy will win the $100,000.00 regardless of the circumstances of George’s death
Cindy will be awarded $50,000.00
Cindy will be awarded nominal damages
Cindy will win nothing
Cindy will be awarded the $100,000.00, but only if she mentioned the skiing accident to the agent.
Cindy will win the $100,000.00 regardless of the circumstances of George’s death
Cindy will be awarded $50,000.00
Cindy will be awarded nominal damages
Cindy will win nothing
Explanation / Answer
Since they have agreed on the insurance based on the belief of accident of George and no terms and conditions about the reason of death was mentioned, so whatever may be the circumstances at the time of death, Cindy will win the $100,000.00, as insurance was purchased by Cindy because she believed that George would surely face an accident which might lead to death
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