The Aetna Casualty & Surety Company v. Hirschell L. Guynes and Mable Ann Guynes

JOHN R. BROWN, Circuit Judge:

From a judgment for the assureds in a diversity action on a $25,000 home fire insurance policy, the plaintiff-insurer, Aetna Casualty & Surety Company (“Aetna”), appeals the District Court’s instructed verdict, denial of a new trial, and final judgment. We affirm.

Facts

In 1978 the assureds, Hirschell Lee and Mable Ann Guynes, bought a four-room frame house in wooded Onalaska, Texas off of Lake Livingston. 1 In October of the following year, they applied for a $25,000 fire insurance policy on the house with Aetna. Aetna declined to inspect the house and issued the…