Williams v. Alabama Farm Bureau Mut. Cas. Ins. Co.

The question presented by this appeal is whether an insured's misrepresentation terminates the insurer's obligation to provide coverage and defend against a claim for damages. Upon trial of the insurer's declaratory judgment action, the court below found that the misrepresentation violated the cooperation clause in the policy and prejudiced the insurer's defense, thereby ending any duty to cover or defend the insured. We agree with this result in the circumstances here presented.

The facts are undisputed. On March 25, 1979, Lisa Buford, then age fifteen, drove a car owned by her father, Thomas…