STONE v. RELIANCE MUTUAL INSURANCE SOCIETY LTD.

[1972] 1 Lloyd's Rep. 469

COURT OF APPEAL

Before Lord Denning, M.R., Lord Justice Megaw and Lord Justice Stamp

Insurance - Non-disclosure - Proposal form completed by insurers' agent on their instructions - Mistake by agent in stating that no previous policy had lapsed, or previous loss been sustained - Declaration in proposal form that agent was agent of insured - New policy issued - Loss of insured's goods by theft - Repudiation of liability by insurers alleging non-disclosure of lapse of policy or of previous loss - Whether declaration could be relied on by insurers to avoid liability - Whether policy affirmed by collection of further premiums after loss. Insurance agent - Proposal form completed by agent - Scope of authority.