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Blue Smoke And Revenging Insurance Company

He thought he could get away with the blue smoke, but when it cleared, the insurance company had the last say.


Author: lynthomas
Date: Oct 16, 2008 - 1:34:09 AM


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There appeared to be nothing out of the normal when a North Carolina man purchased a box of rare and very expensive cigars and promptly insured them against fire. Out of sight of the insurance company, the man partook of the delights of his purchase. He smoked his way through the entire box of cigars, in just a few weeks.
cigar
Somehow the insurance company was unaware that the man did not pay the first premium on the insurance policy.

When filing a claim with the insurance company the man said: "My rare cigars have been lost through a series of small fires".  Naturally, the insurance company refused to pay up on the policy.  The man promptly took the insurance company to court.

"The claim is frivolous", the judge said in his summation. However, the court was forced to acknowledge that the man was holding a policy from the insurance company, showing the cigars as being insurable property and covered against fire.  The judge went on to point out that the insurance company had failed to specify on the policy what form of fire was unacceptable.

A costly and time consuming appeal was not in the insurance company's best interest, even though the judge awarded the man $15,000, for the loss of the cigars by fire.

Once the man cashed the cheque and the insurance company books showed it had been presented at the bank, the insurance company ordered the man's arrest. The charge was twenty-four counts of arson. The insurance company used the man's testimony from the previous court case to convict him. He was charged with deliberately burning insured property. The man was also ordered to pay a $24,000 fine, as well as being sentenced to twenty-four months in jail.


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