Craig and Joanne Collins were insured under a standard fire policy issued by USAA Property and Casualty Insurance Company. In May of 1995, the Collins discovered that a theft had occurred to their personal property and made a claim for lost property. Nine days later, a fire destroyed the entire building.

USAA denied both losses based upon that fact that the Collins had severely overstated the amount of loss on personal property in their sworn loss statement and that the intent was to deceive. The Collins filed suit against USAA as Minnesota has a valued policy law regarding total loss to property. Thus the Collins claimed that while the personal property loss could be voided, the loss to the building could not.

The trial court agreed with the Collins and rendered an opinion on their behalf. USAA appealed.

The decision of the appeals court was in favor of the insurer and against the Collins based upon the fact that the Collins willfully and with intent attempted to deceive USAA. Such action voids the policy, not just a portion. The ruling of the lower court was reversed.

(Collin et al., Respondents v. USAA Property and Casualty Insurance Company, Appellant. MinnCtApp. No. C7-98-63. Filed June 16, 1998. CCH 1998 Fire and Casualty Cases, Paragraph 9519.)