>> Business Law and Ethics
On July 15, Adler purchased in Chicago a Buick sedan, intending to drive it that day to St. Louis, Missouri. He telephoned a friend, Maruchek, who was in the insurance business, and told him that he wanted liability insurance on the automobile, limited in amount to $50,000 for injuries to one person and to $100,000 for any one accident.
Maruchek took the order and told Adler over the telephone that he was covered and that his policy would be written by the Young Insurance Company.
Later that same day and before Maruchek had informed the Young Insurance Company of Adler's application, Adler negligently operated the automobile and seriously injured Brown, who brings suit against Adler. Is Adler covered by liability insurance?