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Warren Marley owned several timber estates and formed the company Big Man Ltd. selling his lumber estate to the company, receiving shares as payment for the sale. Subsequently Mr Marley insured the lumber with Dyoll Assurance Company against fire on policies in his own name. A fire destroyed a significant amount of the company's lumber. Should an insurance claim be made to Dyoll Assurance Company (the insurers) would Dyoll Assurance Company be required at law to pay under this policy, as he was the sole shareholder in the company and was also a creditor of the company to a large extent? Explain the reason for your answer using legal principles learnt in class.
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