Federated American Insurance v. Granillo

OPINION

By the Court,

Springer, J.:

Respondent Bernardo Granillo, Sr. (“Granillo”) was insured by appellant Federated American Insurance Company (“Federated”). Federated offered to insure Granillo at a lower rate if his son, respondent Bernardo Granillo, Jr. (“Bernardo”), was excluded from coverage. Specifically, Granillo was told that his policy would cost $552.00 per annum with Bernardo excluded or $1,170.00 per annum if Bernardo were covered. Although Granillo accepted the lower premium, he nonetheless allowed Bernardo to drive; subsequently, Bernardo caused an accident in which another…