Cawthon v. Calvert Fire Ins.

StukES, Justice.

The complaint in this action is upon a policy of automobile insurance for recovery of alleged loss from theft and fire. The answer of the Insurance Company contains an allegation that the insured automobile was encumbered by a valid and outstanding conditional sales contract at the time of the issuance of the policy whereby the insurance coverage was suspended by reason of the following quoted policy provision:

“This policy does not apply:

“(b) under any of the coverages, while the automobile is subject to any bailment lease, conditional sale, mortgage or other encumbrance not…