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Should the company be obligated to pay the original

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Rosie LaRue calls her insurance agent at 3:00 A.M. and asks the agent to increase the coverage on her house from $60,000 to $80,000. He agrees to do so. During the night the house burns to the ground, and the company denies liability for the additional $20,000 in coverage. On what grounds do you think the denial is based? Should the company be obligated to pay the original $60,000?

Reference no: EM133165920

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