Allstate Insurance Co. v. Old Republic Insurance Co.

VAUGHN, Judge.

The substantive issue is whether an insurance company may invalidate its binder coverage because the insured procured other insurance, as prohibited by the company’s standard insurance policy, when no actual policy was ever issued. Plaintiff argues that termination of binder coverage in this manner violates G.S. 58-176, and therefore defendant’s motion for summary judgment was erroneously granted. We do not agree.

First, it is necessary to understand the position plaintiff is taking here. Plaintiff does not deny its own coverage of the Watkins’ house on the date of the fire, 26…