Lesavoy Industries, Inc. v. Providence Washington Insurance

The two insurance company defendants were represented by a general agent having full authority to receive and accept proposals for insurance on behalf of the companies, and to issue oral binders for insurance.

On May 16,1951 the general agent issued to the plaintiffs 30-day written binders of fire insurance for $25,000 on behalf of *602each, defendant company. The binders provided that each company would issue a standard fire insurance policy to the plaintiffs within the 30-day period, unless within that time it gave notice to plaintiffs it would not further insure said property.

A fire occurred on…