1.Highlight the pertinent facts;

2.Identify the issue of law posed by the case problem. This will be in

the form of a question based on a legal concept from the chapter.

3.What should be the decision in the case? (i.e. the answer to the issue).

4.The reasoning for such decision.

Christine Boyd was designated as the beneficiary of a life insurance

policy issued by Aetna Life Insurance Company on the life of

Christine's husband, Jimmie Boyd. The policy insured against

Jimmie's permanent total disability and provided for a death benefit to

be paid on Jimmie's death. Several years after the policy was issued,

Jimmie and Christine separated. Jimmie began to travel extensively,

and therefore, Christine was unable to keep track of his whereabouts

or his state of health. Jimmie nevertheless continued to pay the

premiums on the policy until Christine tried to cash in the policy to

alleviate her financial distress. A loan previously had been made on

the policy, however, leaving its cash surrender value, and thus the

amount Christine received, at only $4.19. Shortly thereafter, Christine

learned that Jimmie had been permanently and totally disabled before

the surrender of the policy. Aetna also was unaware of Jimmie's

condition, and Christine requested the surrendered policy be reinstated

and that the disability payments be made. Jimmie dies soon thereafter,

and Christine then requested that Aetna pay the death benefit.