Insuring Cigars?

Is the story about insuring cigars true — or is it an urban legend or hoax?

Insuring Cigars?

Only in the USA Legal System:

A Charlotte, North Carolina man, having purchased a case of rare, very expensive
cigars, insured them against ... get this ... fire. Within a month, having smoked
his entire stockpile of fabulous cigars, and having yet to make a single premium
payment on the policy, the man filed a claim against the insurance company. In his
claim, the man stated that he had lost the cigars in "a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had
consumed the cigars in a normal fashion. The man sued...and won. In delivering his
ruling, the judge stated that since the man held a policy from the company in which
it had warranted that the cigars were insurable, and also guaranteed that it would
insure the cigars against fire, without defining what it considered to be "unacceptable"
fire, it was obligated to compensate the insured for his loss. Rather than endure
a lengthy and costly appeal process, the insurance company accepted the judge's ruling
and paid the man $15,000 for the rare cigars he lost in "the fires."

*** This is the funny part ***

After the man cashed his check, however, the insurance company had him arrested on
24 counts of arson. With his own insurance claim and testimony from the previous
case being used as evidence against him, the man was convicted of intentionally burning
the rare cigars and sentenced him to 24 consecutive one-year terms.

Editors Note: Insurance policies are generally written so that deliberate
actions on the part of the policyholders cannot trigger payouts. Furthermore, destroying
your own property isn’t arson, as long as the act isn’t intended to defraud anyone.

Return to Urban Legends