Hansen & Rowland, Inc. v. C. F. Lytle Co.

This is a second appeal from a judgment of the district court determining the amount *172 of insurance premiums to which appellant is entitled from appellees.

Appellee contracting companies, Iowa corporations, entered into a cost-plus-fixed-fee contract with the United States Government to perform certain engineer-management functions in connection with a 155 mile portion, designated Sections A-l and A-2, of the Alaska highway. Appellees obtained through appellant insurance agent, a Washington corporation, comprehensive liability insurance covering their operations on this portion of the highway. The policy took effect on June 17, 1942, insured appellees and all associate contractors operating on these sections of the highway, and provided for a premium rate of 85^ per $100 of wages paid to employees of all the contractors. Appellees cancelled the policy as of August 31, 1942. The total -wages paid by all the insured from June 17 to September 1,1942 amounted to $1,055,214.02. Using this amount as the premium base,' at the short-rate premium applicable upon appellees’ cancellation, appellant claimed (as assignee of the insurance company’s claim) and by judgment of the district…