Beckley v. National Fire Insurance

*1107*1106I. The plaintiff purchased his automobile on *1107April 1, 1919, for a price of $1,185, of which amount lie paid on his own account the sum of $400. For the balance of the purchase price, he executed a mortgage for $785 to the Motors Finance'Corporation, and the proceeds of the mortgage were applied to the ex-tinguishment of the balance of the purchase price. The insurance policy was issued by the defendant upon the same day. It contained the following representations and conditions:

“3. * * * The automobile described is fully paid for by the assured and is not mortgaged or otherwise…