Good morning AZ, sorry I got here late, I am an EE you asked for, but long retired and rusty since I last practiced Power Distribution Engineering SO NO WARRANTY: Regardless I will try and explain the situation. Electrical or Legal questions always draw the most responses, lay as well as professional, and are very interesting. There are indeed a few EE's and Electrician gentleman on here, see what they have to say do NOT take my word alone for any of this.......
In the event the pump is a 240 Volt and there are THREE wires ?? its my best educated guess not being there:
One is hot L1,,,,,,One is hot L2, with 240 Volt from L1 to L2,,,,,,,,One is the Equipment GroundING Conductor,,,,,,,THERE IS NOOOOOOOOOOOOO NEUTRAL. It would be fed with a TWO POLE CIRCUIT BREAKER... While its possible to use a 120 Volt pump and if it had three wires, one would be Hot, one Neutral, one Ground and it would be fed with a SINGLE POLE BREAKER, BUT I DONT KNOW WHAT PUMP YOU HAVE !!!!!!!
YOUR QUESTION: My question is why didn't the breaker trip when the insulation was worn through as it was under water? Its been in the well for fourteen years so the conductor must have been exposed for a pretty good while.
MY ANSWER:
1) The breaker wouldn't trip UNLESS the circuit drew excess amperage and if there was a bad/loose/burned/partial/resistive connection in that series circuit THERES NO EXCESS CURRENT FLOW TO TRIP THE BREAKER. In fact, if that frayed wire burned completely open THERE WOULD BE LIKE NOOOOOOOO OR LOW (what little water conducted) CURRENT FLOW AND THE PUMP NOT WORK. That bad connection if bad/resistive or open, would NOT by that alone cause the breaker to trip.
2) WHAT COULD CAUSE THE BREAKER TO TRIP: In the event a hot wire L1 or L2 were to short to the case frame PLUS the case frame was bonded to the Equipment GroundING Conductor TRIP !!!!!!!! If the case frame was NOT bonded to the Equipment GroundING Conductor a short L1 or L2 to the case WOULD NOT TRIP THE BREAKER... An L1 to L2 short would trip the breaker.........
3) The fact theres an open conductor under water DOES NOT MEAN enough current would flow through the water alone to trip a breaker BECAUSE WATER IS NOT A GOOD CONDUCTOR, ITS QUITE RESISITVE SUBJECT TO MINERAL CONTENT...
There ya go, this help you understand and answer your question ??? If not post back any questions
Best wishes to everyone here, have a good day yall
John T Retired n rusty EE but believe this remains true