Allstate Insurance v. Miller

McCOMB, J.

This is an appeal by defendants from a judgment in favor of plaintiff insurance company in an action for declaratory relief holding that plaintiff is not liable under its policy of insurance for the reason that the insured had made a material misrepresentation in his application for insurance.

Facts: On June 22,1946, defendant Miller (who defaulted in the trial court and has not appealed), executed and delivered to plaintiff Allstate Insurance Company an application for a policy of automobile liability insurance. The application contained the following declaration: “Has any automobile license, or permit to applicant or to any of his household to drive an automobile ever been suspended, revoked or refused? Answer: No.” At the time defendant Miller answered “No” to the foregoing question he knew his answer was false. The policy also provided: “By acceptance of this policy the named insured agrees that the statements and the declarations are his agreements and representations; that this policy is issued in reliance upon the truth of such representations; that this policy embodies all agreements existing between himself and the Company or any of its agents relating to insurance.” At the end of the application appeared the following: “I hereby declare the facts stated to be true and request the Company

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to issue the insurance policy, and any renewals thereof, in reliance thereon. Signed: Francis A. Miller.” Immediately thereafter, there appears the following:

“This application signed:

■. 10:00 A. m. 6 22 1946

Month Day Year

“Subject to conditions on reverse side, the Company hereby binds the insurance applied for:

Effective 10:00 a. m. 6 22 1946

Month Day Year”

Thereafter plaintiff issued its policy effective June 23, 1946, insuring Mr. Miller against liability arising out of the operation of the automobile described in the policy for bodily injuries for any one person in an amount not to exceed $10,000, and if four or more persons were injured in a total amount not to exceed $40,000. It also insured him for property damage in an amount not to exceed $5,000. The policy by its terms expired June 23, 1947.