Question

Pedro – Hernandez Gable married a lovely young woman named Harriet and wanted to take her on an extravagant honeymoon to start their new life together as newlyweds. Pedro purchased traveler's emergency protection insurance before they took an extended around the world honeymoon. Hernandez- Gable took out this protection with a traveler’s insurance policy from Travails R US Inc. The insurance policy promised to pay, $ 2,000,000 coverage in the event of an accident in the event that a emergency medical evacuation was necessary due to an accident where it would be needed. On August 15, 2018, Pedro and his new wife, Harriet, were seriously injured in a car accident while on their honeymoon. When Hernandez-Gable’s parents found out about the accident, they immediately flew to the couple’s location. After Pedro’s parents arrived, it was determined that Pedro was not receiving adequate medical treatment and needed to be transported via air ambulance back to the United States for treatment. His parents paid for the transportation out of their own pocket at a cost of approximately $500,000. A few months after the accident, Pedro wrote a letter to his father stating he would repay the monies his father advanced on his behalf to get him evacuated to get better care. To formalize this promise, Pedro requested in the letter that his father sign the letter Thereafter, Pedro submitted a claim for reimbursement of his travel expenses.

     Traveler’s International argues that because Pedro’s parents signed the check and sent it directly to them, Pedro has no damages and, thus cannot sue them. The insurance company also states that Pedro’s father’s note indicates that the note is is not an enforceable contract against them (the insurance company) because they are not a party to that agreement either.

Issue: Was Pedro’s parents’ payment a novation that relieved the insurance company of their obligation under the traveler’s emergency protection policy?

Answer 1

Answer

The financial cost borne by Pedro 's parents is not, as discussed below, a relief for the firm; There are growing forms of funding in the procurement of healthcare. Many of the key factors include in-pocket spending, in-kind donation, pension, reimbursement and third-party payment. If a patient is admitted, the cost shall be assessed after the patient has been released. The three primary costing approaches are: viewpoint of the employer, viewpoint of the customer and perspective of society. The cost choice depends on the intent of the costing process. Throughout the case of Pedro – Hernandez Gable vs Travails R US Inc., the deciding aspect is the price view depending on the essence of the insurance policy. Hence the main costs borne by Pedro without medical cover in the event of an collision include the cost of first aid at the crash site, ambulance, transportation expenditures, and hospital bill. Being the insurance policy that Pedro bought a short-term emergency form, Pedro bought it to prevent costly loss in the case of an incident during his honey moon to policy all the expense of the incident within the contract duration. The insurance provider violates the contractual policy on the basis of insufficient loss on the ground of protection on Predo 's right of claim. The insurer ignored its task in delivering the accepted services whenever appropriate as quote 'The insurance scheme offered to pay, $2,000,000 compensation in case of an incident in the event that a emergency medical evacuation was necessary due to an accident where it would be needed. '' Pedro receives health services anywhere he can at his own expense, in reaction to the urgent need. Consequently, the company is obliged to repay the losses borne by Pedro. The source of financing that applies for compensation is not part of the deal, as long as the organization has not met its obligation, it has no excuse not to pay.

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