Case Two Date: Tuesday January 20, 2020. Plaintiff: Lucy McNeil Defendant: Good Heart Insurance Company The plaintiff, Lucy McNeil was a previous client of the defendant Good Heart Insurance Company who had purchased a homeowners insurance policy on March 2, 2019. The homeowner's policy was used to insure her town house located in Markham at 2974 Garnet hill Way. Ms. McNeil's town house was estimated at $605,000 and was measured at just under 1,800 square feet. To help purchase the home, Ms. McNeil was approved for a mortgage of $605,000 via People First Mortgages Inc. After three months of overdue insurance payments of $205.00, Good Heart Insurance Company cancelled Ms. McNeil's insurance. Good Heart Insurance Company sent a written notice to Ms. McNeil via priority courier to the address of 2974 Garnet hill Way and received notice that it was delivered on August 14, 2019. Ms. McNeil however was away teaching overseas in Japan for six months and did not receive the notice. Ms. McNeil's mother (Judy) who was watching the home refused the delivery of the cancelation notice. However, Ms. McNeil did not add her mother (Judy) to her insurance policy as one of the named insureds. In addition to notifying Ms. McNeil of the insurance cancellation, Good Heart Insurance also notified People's First Mortgages Inc. On October 3, 2019, a pipe burst that was connected to Ms. McNeil's dishwasher causing over $70,000 worth of water damage. Ms. McNeil filed a claim with Good Heart Insurance on Nov 14, 2019, but it was denied. Ms. McNeil has taken action to sue Good Heart Insurance for the amount of $100,000, 000 to compensate her for the total damages she suffered. 1. Does Good Heart Insurance Company have a legal right to deny Ms. McNeil's water damage claim? Explain. 2. Can Ms. McNeil take legal action against Good Heart Insurance Company? Explain