Which of the Following Was the Result on Appeal in Equity

question 67

Multiple Choice

Which of the following was the result on appeal in Equity Fire & Casualty Company v. Laurence Traver, the case in the text in which an insured on a policy of automobile insurance mailed a premium to the insurer, but it did not reach the insurer prior to the expiration date of the policy; and the insurer refused to provide coverage for a motor vehicle accident that occurred after the expiration date of the policy and before the premium was received?

• A) The court ruled that coverage was required under the policy because of the mailbox rule.
• B) The court ruled that coverage was not required under the policy because of the mailbox rule.
• C) The court ruled that coverage was not required under the policy because the insured did not meet his obligation of seeing that the premium amount was received by the insurer in a timely manner.
• D) The court ruled that coverage was required because the insured had a grace period of 7 days in order for the payment to arrive.
• E) The court ruled that under the unique facts of the case, there was acceptance of the renewal offer preventing a lapse of the policy.

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Definitions:

Rotate

The act or process of moving or turning around a central axis or point.

Scapula

The technical term for the shoulder blade, a flat triangular bone located on the posterior side of the ribcage that connects the humerus (upper arm bone) with the clavicle (collarbone).

Levator Scapulae

A muscle located in the neck and back that elevates the scapula (shoulder blade).

Serratus Anterior

A muscle on the side of the chest that helps rotate the arm and move it away from the body.