Leasure

A provision in an insurance policy states that fraud committed by the insured will void the policy. The insureds receive a check from their insurance company for damage from vandalism to their mobilehome. The check is payable to the insureds and to the lienholders of the mobile-home. The insureds sign the name of the lienholders on the check.

Here we hold that the insureds’ policy of insurance did not become void because the insureds’ acts had nothing to do with the insurance company’s investigation to determine its obligations under the policy.

Howard and Sally Leasure appeal a summary judgment in favor of MSI Insurance Company (MSI). We reverse.

Facts

On July 26, 1996, Howard and Sally Leasure brought an action for breach of contract, breach of the implied covenant of good faith and fair dealing, and other causes of action against MSI. The Leasures alleged that MSI wrongfully failed to pay an insurance claim that they submitted for vandalism of their mobilehome and personal property. MSI moved for summary judgment, contending that the Leasures committed fraud under their mobile-home insurance policy and Insurance Code section 2071, by forging the signatures of…