6. Lawrence and Susan Pope applied for a homeowner's insurance policy with Mercury Indemnity Company of Georgla. The Popes indicated that they had a swinning pool and a diving board. Mrs. Pope wrote a check for the premlum, and Mercury issued a policy. A month later, Mercuny notified their independent Insurance agent, Gerald Woodworth, that it was cancelling the policy because of the diving board. It mailed cancellation notices to Woodworth and the Popes and refunded the premium. Woodworth spoke with the Mercury underwriter, who agreed that Mercury would reinstate the policy upon receipt of a photograph of the Pope's swimming pool with the diving board removed. Lawrence Pope took down the diving board, took a picture of his swimming pook with the diving board removed, and provided the picture, together with the premium-refund check, to Woodworth, who forwarded them to Mercury. Mercury then reinstated a policy. Sometime after providing the picture of the swimming pool with the diving board removed, Lavrence Pope reinstalled the board. About a year later, the Popes' property sustained signticant tomado damage. They made a claim under the policy for that damage, so Mercury sent a claims adjuster to their residence. The adjuster took pictures of the damage, one of which showed the swimming poot with the diving board reinstalled. Mercury sued to rescind the homeowners' poicy, alleging that the Popes had made a materiat misrepresentation that they had permanently removed their diving board. Should the court rescind the policy?
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6- Lawrence and Susan Pope applied for a homeowner's insurance policy.docx
1. 6. Lawrence and Susan Pope applied for a homeowner's insurance policy with Mercury
Indemnity Company of Georgla. The Popes indicated that they had a swinning pool and a diving
board. Mrs. Pope wrote a check for the premlum, and Mercury issued a policy. A month later,
Mercuny notified their independent Insurance agent, Gerald Woodworth, that it was cancelling
the policy because of the diving board. It mailed cancellation notices to Woodworth and the
Popes and refunded the premium. Woodworth spoke with the Mercury underwriter, who agreed
that Mercury would reinstate the policy upon receipt of a photograph of the Pope's swimming
pool with the diving board removed. Lawrence Pope took down the diving board, took a picture
of his swimming pook with the diving board removed, and provided the picture, together with
the premium-refund check, to Woodworth, who forwarded them to Mercury. Mercury then
reinstated a policy. Sometime after providing the picture of the swimming pool with the diving
board removed, Lavrence Pope reinstalled the board. About a year later, the Popes' property
sustained signticant tomado damage. They made a claim under the policy for that damage, so
Mercury sent a claims adjuster to their residence. The adjuster took pictures of the damage, one
of which showed the swimming poot with the diving board reinstalled. Mercury sued to rescind
the homeowners' poicy, alleging that the Popes had made a materiat misrepresentation that they
had permanently removed their diving board. Should the court rescind the policy?
