This was an appeal from a federal district court decision holding that damage to businesses and properties, owned by an insured in Liberia, was within the scope of the war risk exclusion in the applicable property insurance and, therefore, not covered. It was unquestioned that the losses occurred when two individuals led their respective armies in a violent uprising to overthrow the government. The insurer argued and the trial court determined, from the facts, that the uprising constituted an insurrection.

With regard to the meaning of "insurrection," the appeal court quoted the First Circuit Court of Appeals in Home Insurance Company of New York v. Davila, 212 F.2d 731, 736 (1st Cir. 1954), as follows: "To constitute an insurrection or rebellion within the meaning of these policies, there must have been a movement accompanied by action specifically intended to overthrow the constituted government and to take possession of the inherent powers thereof."

The court adopted the definition and, reviewing the record, found it clear that the two leaders and their armies intended to overthrow the government and seize power. It found the events to be an "insurrection" within the scope of the war risk exclusion in the applicable policies. Numerous witnesses testified that the damage to the covered property occurred during the five months of the uprising and that the soldiers of the two rebel armies were major contributors. There was no evidence of any cause of the looting, fires and destruction other than the insurrection.

The judgment of the trial court was affirmed in favor of the insurance company and against the insured.

(YOUNIS BROTHERS AND COMPANY, INCORPORATED, Appellants v. CIGNA WORLDWIDE INSURANCE COMPANY. United States Court of Appeals for the Third Circuit. No. 95-1905. July 30, 1996. CCH 1996 Fire and Casualty Cases, Paragraph 5818.)