Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 6

Saltarelli worked for Future Ford and had his health insurance under its group plan. He then went to work at a Bob Baker dealership and signed up for its insurance. However, because Baker's policy had a three-month waiting period, this coverage did not start until April 8. Saltarelli therefore continued his coverage with Future through April. On May 4 Saltarelli was diagnosed with stomach cancer, and he died on May 29. When his estate tried to collect for his medical bills, Baker refused to pay, citing a statement in the definitions section of a 43-page booklet describing the plan that excluded preexisting conditions such as cancer. Was the term effectively and fairly communicated?