Gaston-Lincoln Transit, Inc. v. Maryland Casualty Co.

HUSKINS, Justice.

Defendant contends that when equitable reformation of an insurance policy “expands” the coverage, equity requires the insured to pay the proper premium for the additional coverage. Two policies were reformed in this case by eliminating endorsement “Auto 1145” which restricted territorial coverage on plaintiff’s buses to a 50-mile radius of Gastonia for some buses and a 150-mile radius for others. Defendant claims additional premiums of $816.00 on policy No. 2-3895407 (1969-70) and $4,007.00 on policy No. 2-3953208 (1970-71). We allowed certiorari for the limited purpose of…