Allstate Insurance Co. v. Shelby Mutual Ins. Co.

The nature and extent of the liability of an automobile liability insurance company depends upon the proper construction of the terms of its policy. The policy is a contract between the parties thereto and must be construed so as to carry out their intent, except insofar as a statute or an authorized administrative regulation or order requires a different construction. Eodman, J., speaking for the Court in Muncie v. Insurance Co., 253 N.C. 74, 116 S.E. 2d 474, said:

“Freedom of contract, unless contrary to public policy or prohibited by statute, is a fundamental right included in our…