Robert L. Bailey v. Gulf Insurance Company

BREITENSTEIN, Circuit Judge.

Appellant-plaintiff Bailey sued to recover on a fire insurance policy issued by appellee-defendant Gulf Insurance Company on a fraternity house located in Norman, Oklahoma. Jurisdiction is based on diversity. The facts were stipulated. The trial court gave judgment for the insurer and this appeal followed.

The prime issue is whether the rule condemning dual agency permits the insurer to avoid liability for violation of the vacancy clause when its contract-writing agent knew of the vacancy. Oklahoma prescribes by statute 1 standard provisions for fire insurance…