Stamler v. Universal Insurance

Plaintiffs, dealers in used cars, suffered a loss by theft of one of their cars and brought suit against defendant which on January 1, 1941, had insured them against loss by theft of all automobiles in the course of purchase and sale. The policy contained a warranty by the insured that the automobiles described therein were fully paid for and there were no liens, mortgage or other incumbrance thereon. It provided that the company would not be liable unless any lien, mortgage or other incumbrance on any property insured was specifically set forth and described in the policy; that the policy…