Lumbermens Mutual Casualty Co. v. Myrick

C. C. Myrick wished to insure a piece of his lumbering equipment, a log skidder. Myrick’s business associate, John Harrison, contacted Dorothy Howard, an employee of Cox & Associates, Inc. (Cox), who completed a blank application for insurance during her telephone conversation with Harrison. Under “previous losses occurring in the past three years,” Mrs. Howard wrote, “none,” based on information received from Harrison. On January 20, 1977, Mrs. Howard mailed the unsigned application, accompanied by a request that the policy be issued with an effective date of January 20, to Lumbermens Mutual…