Rash v. North British & Mercantile Ins. Co.

STANLEY, Commissioner.

The appellee issued a policy -of insurance to the appellants, automobile dealers, by which it insured them against loss or damage to a certain automobile caused by “collision or upset,” in the sum of $1,200. The car was so destroyed. The insurance company denied liability because of breach of a covenant as to the use to which the car should be put. The use, as stated in the policy, was that it would be “Held for sale.” Another of its terms -was that the insurance did not apply “while the automobile is subject to any bailment lease, conditional sale, mortgage or other…