N.C. Grange Mutual Insurance v. Johnson

WEBB, Judge.

The appellant contends that this Court should either find that the “other insurance clause” in the hail insurance policy is void as being against public policy or that the second policy written should be held void, leaving the first policy in force. The appellant bases his public policy argument on what he contends is the difference between fire insurance coverage and hail insurance coverage. He argues that fire insurance coverage involves a moral hazard, that is, that a person is likely to burn his property to collect the loss if it is overinsured. For that reason, the law allows…