A lawyer from North Carolina purchased a box of expensive cigars and insured them against flooding, storm damage and – of all things – fire.
Needless to say, his investment went up in smoke within a month – after which the lawyer filed a claim with his homeowners insurance company, stating that he was owed compensation because “the cigars were lost in a series of small fires”.
The insurer refused to pay, assuming (correctly) that the man had smoked the pack himself. A judge ruled, however, that since the insurer had never stated what was considered to be “unacceptable” fire, the company did, in fact, owe him $15,000 to replace his property.
What Happened Next? –> The insurance company paid the claim, but then had the lawyer arrested. He was sentenced to 24 months in jail and a $24,000 fine for 24 counts of arson and insurance fraud.