Birmingham Boys' Club, Inc. v. Transamerica Insurance

JONES, Justice.

Does the executive director’s ignorance of his corporation’s liability insurance coverage excuse the corporation for not reporting an accident to the insurer as soon as practicable when the executive director failed to report the accident of which he had knowledge to the corporation’s Board of Directors ? Within the context in which this issue is here presented and argued, we answer, “no.” We affirm.

The trial Court’s declaration of rights favorable to the insurer was based on a stipulation of facts which we summarize as follows:

On August 12, 1972, James Bryan Layne, a minor,…