First Savings and Loan Ass'n v. American Home Assurance Co.

Scileppi, J. (dissenting).

I cannot agree that appellant is not entitled to its pro rata share of $2,563, payable on the original coverage of $7,000.

In my view, the fact that the insured had increased its insurance coverage to $15,000 by adding an $8,000 rider to the original $7,000 policy, and then failed to pay the premium for the additional coverage, did not justify the cancellation of the entire policy for nonpayment of premiums. The original $7,000 policy and the $8,000 rider must be deemed separate and divisible. No new policy was issued when the insured sought increased protection;…