Nationwide Mutual Insurance Company v. McAbee

The court held both Federated and Nationwide liable within the limits of their respective policies for the personal injuries and property damages proximately caused by the negligence of Beach in the operation of Queen’s Chevrolet on March 4, 1961. Federated did not appeal. Nationwide did appeal, contending that Beach was not Queen’s agent, but was the agent of McAbee’s at the time of the accident, and was using Queen’s Chevrolet in McAbee’s automobile business. If the contention is correct, the court committed error in holding Nationwide liable.

In construing insurance policies, the burden is…