Michigan Millers Mut. Fire Ins. v. Grange Oil Co.

This appeal is from a judgment awarding appellee the sum of $16,352.20, balance due on a fire insurance policy.

The policy was of the provisional stock type, designed to provide coverage for a fluctuating stock of goods in such a manner that the goods are at all times fully protected but never over-insured when the stocks are low. By its terms the insured was required to make monthly reports of the value of stock on hand and the amount of non-provisional insurance carried on the stock. The coverage of the provisional policy, with certain qualifications noted later herein, was the difference between these two amounts. Premium adjustments were to be made annually.

The value of the stock destroyed by fire is admitted to be $121,410.31. During the period in question appellee was actually carrying non-provisional insurance in the sum of $33,333.00. Through mistake ap-pellee reported the amount of non-provisional insurance as $50,000. In settling for the fire loss appellant used $50,000, the amount of the reported non-provisional insurance, in arriving at its liability. Appel-lee contended, and the trial court found, that $33,333, the actual amount of non-provisional insurance carried…