Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 20

Power, age 17, purchased an automobile insurance policy from Allstate Insurance Company but rejected the underinsured motorist clause. Shortly after the policy was issued, Power, now an adult, was injured in an automobile accident. He then sought to reinstate the underinsured clause that he had initially rejected as a minor and claim money for his injuries under this clause in the contract. Allstate refused to permit Power to collect under this clause. Was Allstate correct? (Power v. Allstate Insurance Co., 440 S.E.2d 406)