The argument of an innocent co-owner of a dwelling is of special interest in the appeal of judgment for the insurer in this case. She contended that she was entitled to reimbursement for fire loss under a homeowners policy obtained by her husband, despite trial court determination that the insurer had no obligation because of material misrepresentations by her husband in the application for insurance.

The appeal court found the grant of summary judgment to the insurer proper on the man's claim. He had answered "no" to application query regarding whether he had experienced fire or theft losses in the recent past, when in fact he had. The court said that Tennessee statute allowed insurers to void policies when application misrepresentation increased the risk of loss. It determined that the insurer in this case relied on the information in the application, which influenced the insurer's decision to issue the policy.

The wife of the applicant argued that her right of recovery was not barred by the misrepresentations. She was a joint owner of the property. She stressed that she had nothing to do with the preparation of the application and did not sign it. She said that she knew nothing of the prior losses of her husband of just two years.

The appeal court found it clear that the husband acted as agent for his wife in obtaining the insurance. The application and the policy were in their joint names.

The court noted that the wife did not give any payment or other consideration for the insurance "separate and apart from that given jointly with (her husband). Therefore, she could not claim a status superior to his." She did not have a basis for recovery under the policy.

The judgment of the trial court was affirmed in favor of the insurance company and against the insureds. (TENNESSEE FARMERS MUTUAL INSURANCE COMPANY, Plaintiff-Appellee v. WAGNER ET UX, Defendants-Appellants. Tennessee Court of Appeals, Middle Section at Nashville. No. Ol-A-01-9505-CV-00190. December 1, 1995. CCH 1996 Fire and Casualty Cases, Paragraph 5571.)