Peerless Casualty Company, a Corporation v. Mountain States Mutual Casualty Company, a Corporation, and Walter M. McLaughlin

Appellant Peerless Casualty Company appeals from a judgment rendered against it in the sum of $38,934.53 in an action filed by Mountain States Mutual Casualty Company and tried without a jury in the District Court of Montana. The District Court’s jurisdiction was based upon diversity of citizenship, and this Court has jurisdiction under 28 U.S. C.A. § 1291.

Mountain States is a mutual casualty company, organized and doing business mainly in Montana, and engaged in writing automobile insurance policies. Peerless does a large volume of reinsurance business and was incorporated in New Hampshire.

On March 13,1951, Peerless and Mountain States entered into a written agreement by which Peerless agreed to rein-sure Mountain States for all losses over a fixed amount as a result of any one accident. The contract provided for Mountain States to pay Peerless a premium for such coverage, the details of which premium were set forth in Exhibits A and B attached to the policy. In the insurance business, a “basic limits” policy is one which provides coverage for loss, from any one accident, of $5,000 for injuries to one person, $10,000 for injuries to two or more persons, and $5,000 for…