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Insurance - Automobile Insurance - "Passengers For Consideration", Jacob L. Keidan

Michigan Law Review

In an action upon an automobile liability insurance policy, defendant sought to avoid liability by proof of voluntary payments made to the insured by the plaintiff subsequent to the beginning of the trip. It was held that since no agreement for payment was made prior to the trip the insured was not then carrying "passengers for consideration" within the meaning of the clause contained in the policy for the purpose of protecting the insurer against such use of the vehicle. Reed v. Bloom, (D. C. Okla. 1936) 15 F. Supp. 600.