Do you agree or disagree with the court decision? Explain

 

One case that deals with an insurance issue is that of Gray v. Zurich Insurance Co. In this case the insured brought a case against his insurer for failing to defend an action lawsuit against him which alleged that he had committed an assault. On the night of this assault, the plaintiff had gotten into an accident with another individual, and soon after, this individual exited his vehicle and approached the plaintiff's car. He opened the plaintiff's door and in an attempt to defend himself and his passengers, the plaintiff struck the individual. The insurer argued that the exclusionary clause of the policy excluded cases where the insured intentionally caused the bodily injury. The language of this policy does not clearly state this. The court states that in purchasing insurance, the plaintiff would reasonable expect that the insurer would defend him in all personal injury actions brought against him. The court reversed the judgement and the insurer was required to pay the fees incurred in the insured's court case. 

 

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2. Do you agree or disagree with this statement?

 

People purchase insurance since the life and property of an individual are surrounded by the risk of death, disability, or destruction. With those risk financial losses can occur insurance is a prudent way to transfer such risks to an insurance company. When one gets insurance, you are creating a legal agreement between you and the insurance company. The insurance company is the insurer, and you are the insured. The promise made by the insurance company is to make good the losses of the insured on happening of the insured contingency. The individual pays a premium in return for the promise made by the insurance company.