Homeowners Warren and Carla Tate live in Nebraska. Working with Cornhusker Insurance Company (Cornhusker) agent Curry, the Tates applied for property insurance on their home. At the time they submitted their application, the Tates assumed that when Cornhusker issued them a policy, the policy would furnish coverage for losses stemming from floods. Cornhusker approved the Tates" application and issued them a written policy covering their house. The written policy's terms excluded coverage for flood-related losses. Three (3) months after they received their policy from Cornhusker, the Tates house sustained damage as a result of a flood. When the Tates submitted a claim to Cornhusker, the insurance company denied the claim because flood coverage was not provided by the policy. The Tates have sued Cornhusker to obtain reformation of the written policy so that it would provide flood coverage. Under which of the following alternative scenarios would the Tates stand the best chance of obtaining a court order of reformation?

Multiple Choice

If Curry told the Tates at the time of the application that the policy would furnish flood coverage.

If the Tates' assumption that the policy would furnish flood coverage stemmed from the fact that floods have occurred every few years in the Nebraska area.

If Curry informed the Tates, after the loss but before submission of their formal claim to Cornhusker, that the policy did not furnish flood coverage, but urged the Tates to submit their claim anyway.

If the Tates did not read their policy after receiving it from Cornhusker and therefore first learned that their policy did not provide flood coverage when their claim was denied by Cornhusker.

Enabled: EXAM 3: Chapters 15, 16, 17, 18, 19, 21, 22, 23, 24, ... ( Saved Help Save & Exit Submit Homeowners Warren and Carla Tate live in Nebraska. Working with Cornhusker Insurance Company (Cornhusker) agent Curry, the Tates applied for property insurance on their home. At the time they submitted their application, the Tates assumed that when Cornhusker issued them a policy, the policy would furnish coverage for losses stemming from floods. Cornhusker approved the Tates application and issued them a written policy covering their house. The written policy's terms excluded coverage for flood-related losses. Three (3) months after they received their policy from Cornhusker, the Tates' house sustained damage as a result of a flood. When the Tates submitted a claim to Cornhusker, the insurance company denied the claim because flood coverage was not provided by the policy. The Tates have sued Cornhusker to obtain reformation of the written policy so that it would provide flood coverage. Under which of the following alternative scenarios would the Tates stand the best chance of obtaining a court order of reformation? Multiple Choice O If Curry told the Tates at the time of the application that the policy would furnish flood coverage. O If the Tates' assumption that the policy would furnish flood coverage stemmed from the fact that floods have occurred every few years in the Nebraska area. f Curry informed the Tates, after the loss but before submission of their formal claim to Cornhusker, that the policy did not furnish flood coverage, but urged the Tates to submit their claim anyway. If the Tates did not read their policy after receiving it from Cornhusker and therefore first learned that their policy did not provide flood coverage when their claim was denied by Cornhusker. O 45 of 50 Next >