National Union Fire Insurance Co. v. Bynum

W. B. Bynum owned a large sawmill plant, upon which he carried insurance amounting to $169,500. This insurance was written by a large number of insurance companies, and three of the policies, aggregating $10,000, were written by the Home Fire Insurance Company, of this State. A fire occurred, and the loss as adjusted amounted to $137,770.10.

Each of the insurance policies covering this property contained what is commonly called the pro rata clause, which provides that each insurance company shall only be liable to the insured for its pro rata amount of the insurance carried on the property, ‘…