Shelly was involved in an auto accident and was admitted to the local hospital, as she had suffered severe injuries. She informed the hospital staff that she was covered under accident insurance, and that the insurance company would pay for the medical bills. When the insurance agent arrives, he informs her that the insurance will cover every cost and that all she has to do is sign some papers for the insurance company to start the procedures. The papers that Shelly signs are actually an agreement that the insurance company will pay only 30 percent of the medical bills, since Shelly was driving recklessly. Analyze the case.

At first the company made her to believe that they would cover the expenses. The statement by the company explains that they must have carried out a research or made enquiry about the cost but didn't conduct a research on whose fault it was as a result of the accident.

On stating in the paper that Shelly signed that they would only fit the bill of 30% for the medical, shows that this time,they had made there research and arrived at the conclusion to only pay 30%. Maybe they have seen the medical report and also had contacted agencies responsible to examine the accident.

Based on these facts,( the 30% they are to fit the bill) it is can be concluded that the insurance company carried out a research on the cause of the accident and concluded that Shelly is the actual cause of the accident but are ready to pay 30% of the medical bills, this must have been part of the agreement between Shelly and the insurance company.