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3. Shelly met with an auto accident and was admitted in a hospital, as she had suffered severe injuries. She informed the hospital staff that
3. Shelly met with an auto accident and was admitted in a hospital, as she had suffered severe injuries. She informed the hospital staff that she was covered under accident insurance, and that the insurance company would pay for the medical bills. The insurance agent arrives and empathizes with Shelly. He informs her that the insurance will cover every cost and that she will have to sign some papers for the insurance company to start the procedures. The papers that Shelly signs are actually an agreement that the insurance company will pay only 30 per cent of the medical bills, since Shelly was driving recklessly. Analyze the case
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