Scenario 2 - Insurance

Professor Black knew that her colleague, Professor Brown had Stage 4 colon cancer. Black applied for life insurance on Brown's life and named herself as the beneficiary. Because of a similarity in the names of the professor and the colleague, an error was made and the policy was issued. Professor Black also sold her Ford Escape to a student, Reed. When the student drove away, it was clear that the student was an extremely reckless driver. Professor Black decided not to cancel her property insurance policy that she maintained on the vehicle she sold to the student. Shortly thereafter, the colleague, Professor Brown died and the student totaled the car. Professor Black applied for insurance benefits under both policies and each of the insurers denied payment.

• What are the arguments for each party in both cases?
• Decide which party should win each case and provide support for your answer with the applicable law and/or text material.