Question: Sims and Dorothy Good purchased a property insurance policy on
Sims and Dorothy Good purchased a property insurance policy on their home from Continental Insurance Co. Fire was among the covered perils. The policy contained an "increase of hazard" clause stating that Continental would not be obligated under the policy if the risk of fire was increased "by any means within the control or knowledge of the insured." After the policy took effect, a fire destroyed much of the Goods' home. While putting out the fire, firefighters discovered an illegal liquor still concealed in a false closet under the eaves of the roof. The still, encased by bricks and mortar, consisted of a 90- gallon copper vat over a butane gas burner. Firefighters also discovered 22 half-gallons of "moonshine" and many 55-gallon drums full or partially full of mash. A police detective who dismantled and examined the still's burner after the fire concluded that the still was in operation when the fire occurred. The Goods denied this, though Sims Good admitted having installed the still two years earlier, after the Continental insurance policy became effective. Continental refused to pay the Goods' claim, so the Goods sued Continental to recover proceeds under the policy. After the trial court awarded damages to the Goods, Continental appealed. Were the Goods entitled to recover damages from Continental?
Answer to relevant QuestionsThe Plummers owned a commercial building in which they operated two businesses. The building and its contents were insured by Indiana Insurance Company (IIC). After an explosion and fire destroyed the building, the Plummers ...Rusty Jones, a used car dealer, applied to First Financial Federal Savings and Loan Association for a $50,000 line of credit to purchase an inventory of used cars. First Financial refused to make the loan to Jones alone but ...Jacob Phillips and his wife, Charlene, jointly owned the Village Variety 5 & 10 Store in Bluefield, Virginia. In addition, Mrs. Phillips was a computer science teacher at the Wytheville Community College. On December 1, ...Brian Scholz was involved in an automobile collision with a person insured by The Travelers Insurance Company. At the time, Scholz was cited for, and pled no contest to, a criminal charge of driving under the influence of ...Darryl Young presented five photocopied checks to the Lynnwood Check-X-Change on five different days between June 13 and June 21. Lynwood cashed the first four checks presented. The fifth check, which was presented on a ...
Post your question