Allstate Insurance Company, a Corporation v. Oscar F. Erickson

The Allstate Insurance Company appeals from a judgment of the United States District Court awarding Erickson recovery on an automobile insurance policy for injuries suffered in an accident. Allstate contends that the trial court erred in not holding that Erickson’s representation in his application for Allstate insurance that no insurer had ever cancelled any automobile insurance against him was a materially false representation which voided his policy.

Allstate contends that the insured made such a material misrepresentation to it in marking X in the square before the word “No” in answer to the following question asked by Allstate of the insured when he applied to it on December 17, 1952 for his insurance:

The claimed material misrepresentation is based on the fact that when the question was asked, the insured then had a policy in the State Farm Insurance Company concerning which he had received from that company on December 17, 1952, a letter stating that the policy “is being cancelled effective 12:01 A.M. Standard Time on the 27th day of December, 1952, and no further protection will be afforded after that date.” (Emphasis added.)

The district court construed Allstate's…