Problem: Fact Pattern: George Johnson, a Minnesota resident, parked his car on a lake while he was watching an iceboat race. During the race, the ice beneath his car unexpectedly gave way, and the car sank to the bottom of the lake. George filed a claim with his insurance company; however, because George did not carry the appropriate coverage, his claim was denied. George is unsure whether his loss would qualify as a casualty loss.

Question 1: What primary authority are you relying on in your conclusion? Be sure to identify the authority as legislative, judicial, or administrative.

Question 2: Does George's loss qualify as a casualty loss? Why?