A cheeky smoker purchased a box of rare cigars and insured them against-
among other things- fire.
Within a month, having smoked all the cheroots and without having paid
the premium on his policy, he filed a claim against the insurance
company. On the form, the sly smoker said that the cigars were lost "in
a series of small fires". The insurer refused to pay, saying the man had
consumed the cigars in the normal way. The man sued.
A judge agreed the claim was frivolous, but said that the man held a
policy that promised to cover the cigars against fire, without defining
what was an "unacceptable fire". He found in favour of the smoker and
said the insurer was obliged to pay the claim.
Rather than endure a lengthy and costly appeal, the insurance company
accepted the ruling and coughed up $15,000. After the smoker had cashed
the cheque the company demanded his arrest on 24 counts of arson. With
the insurance claim and testimony from the previous case, the man was
convicted of burning his property. He was jailed for two years and
ordered to pay a $24,000 fine.