Lumbermens Mutual Casualty Co. v. North River Insurance

OPINION OF THE COURT

Leo F. Hayes, J.

The defendant at one time issued an automobile liability policy of insurance to one Arnold Smith, but later sought to cancel such coverage due to nonpayment of premiums. Several months later Arnold Smith ran into the auto of plaintiff’s assured, Barbara Swan. According to the complaint, Smith was intoxicated and solely responsible for the accident.

When informed of the accident, agents of the defendant refused to defend or to pay based on the alleged prior cancellation of insurance.

Plaintiff, having been informed that the defendant had canceled Smith’s…