J. SPENCER BELL, Circuit Judge:
This is an appeal from a declaratory judgment action brought in the district court to determine the rights and liabilities of insurer and insured under a standard-form homeowner's insurance policy. Jurisdiction is based on diversity of citizenship, and North Carolina law applies. Jury trial was waived.
On June 16, 1961, plaintiff, the Northern Assurance Company, issued to the defendants, the Spencers, a "Homeowner's Policy"...
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