Gilmont

Appellant Mayflower Insurance Exchange has brought this action to secure a declaration of its rights and obligations under a policy of insurance issued by it to one McKinzie in Portland, Oregon, on April 16, 1957. Appellees Gilmont were injured on June 8, 1957, when the automobile in which they were riding collided with that driven by McKinzie. They assert negligence on the part of McKinzie and liability on the part of appellant under its insurance policy.

This action is founded upon the contention of appellant that the insurance policy is void since its issuance resulted from fraudulent misrepresentations of fact by McKinzie. Judgment of the District Court, pursuant to jury verdict, was for appellees. Federal jurisdiction is founded upon diversity of citizenship.

The record establishes the following facts: On April 16, 1957, at the close of the business day in Portland, Oregon, McKinzie walked into the office of an insurance agency representing Mayflower and advised their office manager that he wished to secure an automobile liability policy covering a car which he had purchased earlier in the day from a used car dealer. McKinzie had never had any previous dealings with the…