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PRUDENTIAL PROP. & CAS. INS. v. SAFEGUARD MUT. INS.

Civ. A. No. 79-2371.

528 F.Supp. 709 (1981)

PRUDENTIAL PROPERTY AND CASUALTY INSURANCE COMPANY v. SAFEGUARD MUTUAL INSURANCE COMPANY and Sterling Premium Finance Company, Inc.

United States District Court, E. D. Pennsylvania.

December 28, 1981.

Attorney(s) appearing for the Case

Walter S. Jenkins, McWilliams & Sweeney, Philadelphia, Pa., for plaintiff.

Barry J. Goldstein, Philadelphia, Pa., for Safeguard Mut. Ins. Co.

No appearance entered for Sterling.

OPINION

DITTER, District Judge.

This is an action for a declaratory judgment between two insurance companies and involves an automobile liability policy. The policy was purportedly cancelled by the insured's agent acting under a valid power of attorney obtained from the insured as part of a plan for the financing of premium payments. By statute, Pennsylvania provides that if an insurer cancels an automobile policy for the nonpayment of premiums, 15 days...

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