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AMERICAN FAMILY MUT. INS. CO. v. JONES

No. 83-1659.

739 F.2d 1259 (1984)

AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Plaintiff-Appellee, v. Larry D. JONES and Sandra L. Jones, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided July 25, 1984.

Rehearing Denied August 20, 1984.

Attorney(s) appearing for the Case

Charles Thomas Gleason, Gleason, Hay & Gleason, Indianapolis, Ind., for defendants-appellants.

William M. Osborn, Osborn & Hiner, Indianapolis, Ind., for plaintiff-appellee.

Before WOOD and POSNER, Circuit Judges, and REYNOLDS, Chief District Judge.

REYNOLDS, Chief District Judge.

On this appeal, we are asked to decide whether, under Indiana law, a party who passes a worthless check to an insurer's agent in exchange for the agent's promise to provide coverage, and who subsequently requests that the application for coverage be withdrawn, is covered by virtue of the agent's promise. The district court concluded that no coverage could exist in such a situation and entered judgment in favor of the insurer. We agree...

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