INSURANCE - WAIVER AND ESTOPPEL AS APPLIED TO EXCEPTED RISKS

Authors

Michigan Law Review, University of Michigan Law School

Abstract

The appellee insurance company issued a policy of automobile liability insurance covering a motor truck owned by appellant, which policy stated that the occupation of assured is "handling farm machinery, crane fixtures and paints," and that the use made of the truck should be commercial ("commercial" being defined as "the transportation or delivery of goods, merchandise or other materials, and uses incidental thereto, in direct connection with the named assured's business occupation . . . including the loading and unloading thereof"). Appellant began to transport tanks of butone gas, which fact was known by appellee's agency on the date the policy was renewed. Subsequently, appellee's employees, while unloading a tank allowed the gas to escape, thereby causing death or injury to a number of people. Claims having been made against appellant, the latter called upon appellee to make good, whereupon appellee brought suit for a declaratory judgment relative to its liability. Held, that, since carrying butone gas was outside the coverage of the policy and since appellee was not estopped to deny such, there was no liability. Carnes v. Employers' Liability Assurance Corp., (C. C. A. 5th, 1939) 101 F. (2d) 739.

Recommended Citation

Michigan Law Review, INSURANCE - WAIVER AND ESTOPPEL AS APPLIED TO EXCEPTED RISKS, 38 Mich. L. Rev. 104 (1939).
Available at: https://repository.law.umich.edu/mlr/vol38/iss1/19