Contracts 65In an accident involving jet skis at Boone Lake, Webster tortiosly injured Munn which put Munn in the hospital forthree weeks. While in hospital, Somewhat Beneficial Insurance Company (SBIC), the liability insurer for Webster,settled with Munn for $15,000. Munn signed a release with SBIC and she received a notification from SBIC thatthey would pay her by check within sixty days.Munn finally left the hospital almost a week after reaching asettlement with SBIC. The Zinc Community Hospital (ZCH) presented Munn with a bill for $13,000 and she gavethem her promissory note for $13,000 that was negotiable. She also indicated in her note that it was due in sixty daysand she assigned to ZCH the settlement notification she received from SBIC. ZCH then assigned the settlementnotification for value and negotiated the note to RMB Medical Associates.Two weeks later, Munn indicated toSBIC that she had lost the settlement notification identical to the first, although this was clearly a misrepresentationto SBIC. She then assigned it to F.A. Motors as a down payment for $15,000 on a new, imported sports car.Immediately after signing the contract with Munn, F.A. Motors notified SBIC of the assignment of the settlementnotification.It was subsequently discovered that Webster was actually an irresponsible minor. One month later, ZincCommunity Hospital discovered that it had overbilled Munn by $1,500.Can Munn recover if she starts an action against SBIC seventy-five days after the insurance settlement agreement?(A)No since the settlement between Munn and SBIC was vitiated by Webster's minority and irresponsibility.(B)No since she made at least one effective assignment of her claim against SBIC and SBIC had received effectivenotice of her assignment.(C)No since she no longer had possession of SBIC's written settlement notification.(D)Yes since her attempts to assign her claim against SBIC were not effective due to the fact that SBIC's agreementto pay by check created a personal right in Munn that she could not assign.
