Strickland, an insured under a Gulf Life disability policy, injured his right le
ID: 3196473 • Letter: S
Question
Strickland, an insured under a Gulf Life disability policy, injured his right leg. Doctors worked unsuccessfully for 118 days to save his leg. The insurance policy provided that Gulf Life would pay disability benefits if an insured lost a leg through “dismemberment by severance” within ninety days after an accident. Gulf Life denied liability because severance of Strickland’s leg was not within the ninety-day limitation. Strickland sued, claiming the ninety-day limitation was contrary to public policy. Should Strickland collect on the policy? Why or why not?
Explanation / Answer
Solution: Strickland is not correct on suing the Insurance company as when both the parties, i.e., Strickland and The Insurance company entered into the contract it was clearly known to both that The Insurance would be provided if the insured lost a leg through “dismemberment by severance” within ninety days after an accident.
But, Strickland claimed the Insurance only after 118 days which exceeded the limit of 90 days as agreed by both the parties in the contract. Since, The contract would be violated if Strickland claimed in court, hence, it is not a legal option for Strickland to sue the Insurance company as he had willingly and unconditionally signed the contract.