Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 13

David and Nancy Songer planned to travel outside the United States and wanted to acquire medical insurance prior to departure. They spoke with an agent of Continental who requested that Nancy Songer undergo a medical examination based on a statement that s he had a heart murmur. She promptly complied, and the Songers later met with the agent to complete the application. David Songer signed the application and tendeed a check for the first six months' premium. The Songers also claim that the agent stated that a "binder" was in effect such that policy coverage was available immediately.The agent subsequently denied making this statement, relying, instead, on a clause in the contract that required home office acceptance. The Songers left the United States and sixty days later inquired as to the status of their application. At approximately the same time, Continental denied the application and sent a refund to the Songers. Nancy Songer was then severel yinjured in an automobile accident. When Continental refused to honor the policy, the Songers claimed that the oal representation constituted part of the contract due to the vagueness of the policy "acceptance" la nguage.Is the evidence regarding the oral representations admissible?