Business Law 2

Chapter 16 Insurance and Guarantee

Textbook Case 3 (p. 387)
Issues:
- Inaccurate disclosure applies? Was it materially enough?
- Exturpi Causa: you cannot prophet from your own illegal action.

Plaintiff: Estate of Desai (Why not sister and trumble? Because Trumble killed sister)
Defendant: Insurance Company

PLF: Estate of Desai Defendant: Insurance Company
- Seeking a declaration that policy is
valid.
- Insurance contract was formed
- All premiums paid (Valid Policy)


- No evidence higher risk
- Did already make payments




- Always changing
100,000 vs 75,000 is doesnt matter



- Not uncommon to have friends as
beneficiaries
- At time not a murderer

- Seeking declaration that policy is void
- Because of material non-disclosure
- Insurance contract is utmost good faith
duty to disclose all material info.
1. Occupation
- Said business administrator when
really an office cleaner
- material because impacts future
income
- Also, material because of risk
chemicals equipment
2. Net Worth
- Said $100,000 when considerably less
- Again impacts ability to pay
premiums
3. Relationship with Trumble
- said business associate
- if truthful would investigate and
discover who Trumble is. Then, policy
is void.

Policy void (Half)


Kevins Answer
- Starting point of disclosure issue is difficult issue.
- There is a duty to disclose, but not everything. Only disclose the material. Reasonable insurance task
and company.
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