Insurance — Liability — Premiums — Advance premium — Calculation of earned premium at expiration of contract — Provisions of policy — Mistake.
In an action by an insurer and its agent against defendant, the insured, to recover the balance of the premiums on a liability insurance policy alleged to be due and owing, in which it appeared that the policy was issued for a period of three years and an advance premium in a particular sum charged; that, subsequently, the insurer discovered that it had made a mistake and had charged an advance premium for a one year policy instead of a three year policy, and later defendant was notified of this mistake; that the insurance contract provided that the premium stated in the declaration was an estimated premium only, and upon termination of the policy the earned premium should be computed in accordance with the company's rules and rates; and that the court below holding, against defendant's contention that the estimated premium was the earned premium, that the earned premium was to be determined at the end of the contract, directed a verdict for plaintiffs; it was Held that the judgment on the verdict should be affirmed.
Argued June 16, 1960.
OPINION PER CURIAM, September 20, 1960:
The order of the court below is affirmed on the opinion of President Judge FRED W. DAVIS, reported in 21 Pa. D. C.2d 787.