When Premium Not Paid in Money

tion only when it is actually received by the insurer or his representative; and the policies will be binding in case of loss while the letter is in the mail. *Crown Point Iron Co. v. Ætna Ins. Co., 14 L. R. A. 147; 127 N. Y. 608; 40 N. Y. S. Rep. 426; 28 N. East. Rep. 653; 21 Ins. L. J. 31; rev'g, 53 Hun, 220.

76. When premium not paid in money. When company accepts a note for the premium, and same is not paid when due, to effect cancellation it is not necessary to repay or tender back any portion of the premium; the only duty imposed on the company is to give notice in reasonable time. Little v. Eureka Fire Ins. Co., 11 Ins. L. J. 417; 38 Ohio St. 110.

77.- Company cannot cancel by notice only, if its agent has agreed to accept payment of premium in trade or groceries, and assured being ready at all times to fulfill the agreement. Carlwitz v. Germania Fire Ins. Co., 12 Ins. L. J. 127 (U. S. Cir.)

Other Special Cases.

cellation of the policy, is a recognition of its validity. The very fact of an attempt to cancel it is an admission that there is a policy capable of being canceled. Ætna Ins. Co. v. Maguire, 51 Ill. 342.

82.- Note. Cases seeming to hold that company must cancel, otherwise evidence of waiver, policies contained clauses in terms providing that it might cancel in certain specified contingencies. For example see Albany City Ins. Co. v. Keating, 46 Ill. 395.

83. Questions for a jury. When policy has been once surrendered, and surrender accepted by company's agent, the taking of it back cannot revive the contract or make a new one. At least it is for a jury to say what may be the meaning of such an act, assured having a right to take cautionary measures. Train v. Holland Purchase Ins. Co., 62 N. Y. 598.

84.- The question as to whether agent of company who issued policy was agent of assured for purpose of cancellation is proper to be determined by a jury. Roger Williams' Ins. Co. v. Carrington, 9 Ins. L. J. 577; 43 Mich. 252.

85.- Company, to effect cancellation, must make an actual payment of the re

78.- Policy continues in force until notice is given that it is canceled, and in absence of fraud for a reasonable time thereafter for procuring other insurance to replace it; what is reasonable time is to be determined by the court if no ques-turn premium. If a due-bill or other certion about the facts; otherwise by the jury. If company holds obligation of a third party which it has accepted in lieu of the premium, a surrender of it is essential to effect a termination of the risk. Chadbourne v. German American Ins. Co., 16 Ins. L. J. 897; 31 Fed. Rep. 533; 24 Blatch. 492.

79. Cancellation as affecting for feiture. Policy having once attached, company can rely upon a forfeiture without the return or offer to return any portion of the premium. The usual provision in a policy giving company the option to cancel it applies only where the company sees fit to cancel the policy, and not in cases where there is a forfeiture resulting from the act of the assured. Phonix Ins. Co. v. Stevenson, 78 Ky. 150; Johnson v. Amer. Ins. Co., 41 Minn. 396. 80.— Whether company bound to cancel on acquiring knowledge of increase of risk, query? Viele v. Germania Ins. Co., 26 Iowa, 9.

tificate of indebtedness is given for the same, it is for the jury to determine whether such an instrument is taken as payment or only as evidence of indebtedness. Home Ins. Co. v. Tighe, 12 Rep. 441; 11 W. N. C. 15 (Pa.)

86.— The question of reasonable notice should be submitted to the jury, when the property is of such a nature that a risk will not be taken upon it without a survey, and the fact is controverted as to whether there was sufficient time for such survey and reinsurance after the notice of the intention to cancel the policy was given, and before the fire. Chadbourne v. German American Ins. Co., 31 Fed. Rep. 533; 16 Ins. L. J. 897; 24 Blatch. 492.

87. Other special cases. A receipt in the following form: "The Times & Beacon Assurance Company, Agent's Office, Brantford, 3d February, 1858. Received from Messrs. T. Goodfellow & Co., the sum of fourteen dollars, being the premium for an insurance to the extent 81. The general agent ordering a can- of $2,000, on property described in the

Other Special Cases.

order of this date, subject to the approval The secretary replied disclaiming any of the board at Kingston, the said party knowledge of any such risk, and said that to be considered insured for twenty-one if he found a policy providing for such a days from the above date, within which risk he would cancel it. The secretary time the determination of the board will testified that the conversation occurred be notified. If approved, a policy will be on the street, that it had passed out of his delivered; otherwise the amount received mind, and that he didn't think of it again. will be refunded, less the premium for the He said further, that if any such informtime so insured." Held, not an absolute ation had been communicated to him in insurance for twenty-one days certain, relation to any fact affecting the validity but that the company might within that of the policy, he should feel bound to act period reject the risk, and give notice, upon it in some way, but that he should after which their liability would cease. not if spoken to by one having no interest Goodfellow v. Times & Beacon Assurance in the policy. It was claimed that comCo., 17 Up. Can. Q. B. 411. pany was bound to cancel the policy after such information. Held, that it was error to charge the jury, as a matter of law, that the company, through the information given through its secretary, had notice. Texas Banking Co. v. Hutchins, 53 Tex. 61.

88.- When the policy reserves a right of election to terminate it, on increase of risk from specified causes, when the unearned premium will be returned; held, the company can terminate the liability on such increase of risk by giving the notice and tendering back the unearned premium. Albany City Ins. Co. v. Keating, 46 Ill. 395.

89. An entry by company on its books noting cancellation, made without knowledge or consent of the assured, is not admissible as evidence of the facts recited. King v. Enterprise Ins. Co., 45 Ind. 44.

90. An interim receipt for insurance stated that it was made subject to all the conditions contained in the printed form of policy then in use. Among such conditions was one providing that policy might be canceled on giving ten days notice, and by repayment of the unearned portion of the premium. The receipt stated that the property should be held insured for thirty days from date, unless notified to the contrary. Held, that in order to terminate the insurance the company was bound to give ten days notice and pay the return premium. Grant v. Reliance Fire Ins. Co., 44 Up. Can. Q. B. 229.

92. The power to cancel a policy cannot be delegated by an agent to another person; such person may however deliver the notice and pay or tender the return premium. Runkle v. Citizens' Ins. Co., 6 Fed. Rep. 143.

92a. Cancellation by the company can be effected only by compliance with the statute. R. S. Ont. ch. 167, § 114; Bank of Commerce v. British America Assur. Co., 18 Ont. 234 (Can.)

93. A policy which provides that the insurance may be terminated at any time at the option of the company is avoided from the time when the insured has notice that the proper agent has received the company's instructions that it would no longer be liable; and after insured knows of the company's instructions to terminate the risk, his agreement with the agent to continue it does not bind the company. Springfield, etc. Ins. Co. v. McKinnon, 59 Tex. 507.

94.— Where a company desired to cancel a policy and so notified its agent and sent 91.- A local agent of a company on a him a policy from another company to be visit to the oil factory insured saw that substituted and the assured assented to cotton gins were used. During the same the substitution; the original policy was summer the secretary visiting the local surrendered and the substituted policy deagent, the latter complained he was not livered after the loss. Held, that the origiallowed to take a risk on gins and ginnal agent was also the agent of the substihouses, and when told that the company tuted company and the latter was declined all such risks replied, "you have estopped to deny its liability. Whiteman a risk on Ahrenbeck's Cotton Seed Oil v. American Central Ins. Co., 14 Lea, 327 Factory, and they are running gins." (Tenn.)

Other Special Cases.

paying the company the customary short rates from the date of the policy, together with the expenses of writing the risk, the "expenses of writing the risk” include commissions paid to the agent for procuring the risk. ld.

102.- Where one insured in several companies, upon being dunned for a balance of premium due on two of the policies, concluded that he had insurance enough and could get along without the two on which the premium remained un

95.- Where a party holds a policy of insurance in one company at the time of loss, no liability can attach against another company on a policy issued before the fire and retained by the agent until after the loss, to be substituted for the first policy, but of which the assured had no knowledge; and this, although the assured accepted the substituted policy after the loss, and gave up the other one for cancellation. Lancashire Ins. Co. v. Nill, 4 Cent. Rep. 294; 114 Pa. 248. 96. Suits instituted on insurance pol-paid, and, with the intention to surrender icies by attorneys of the insured under a those policies, he handed over to the agent mistake of fact cannot operate as a two other policies, upon which the preratification of the acceptance of those mium had been paid in full, his mistake policies, and as an abandonment of a will be rectified by the court. *Von Wien right under other policies for which they | v. Scottish U. & Nat. Ins. Co., 118 N. Y. 94; had been substituted. Niagara F. Ins. 27 N. Y. S. Rep. 934; 23 N. East. Rep. Co. v. Raden, 5 So. Rep. 876; 87 Ala. 311. 123.

-

97.- A surrender of the right of insur- 103. A contract of insurance is reance money after a loss, by a person ig-scinded by a tender of the premium and norant of the right, by the acceptance of notice that the policy is canceled, before other policies, will not be binding where suit brought thereon, where false repthe agent who secured the change of pol-resentations were made by the assured. icies did not disclose to her the fact that * Rankin v. Amazon Ins. Co., 26 Pac. in procuring the new policies he had rep- Rep. 872; 89 Cal. 203; 20 Ins. L. J. 844; resented that no other insurance existed, affi'g on rehearing, 20 Ins. L. J. 278; 25 which was not in fact true. Id. Pac. Rep. 260.

103a.- Authority of an

insurance

98. A provision in a policy, that it may be terminated by notice to the per-agent to write up a policy for the inson who may have procured it, does not sured, and an agreement to arrange the cover a case in which the agent of the premium for him, cannot imply the furcompany gives notice to himself as the ther authority to receive notice of cancelperson who procured the insurance. Id. lation of the policy. *McCartney v. State 99.— An insured may rescind his policy | Ins. Co., 45 Mo. App. 373. on account of misrepresentations by the 104.- One who insures his property agent as to the solvency and financial for a stated period cannot, under Cal. Civ. standing of the company. *New Era Asso. v. Weigle, 128 Pa. 577; 47 Phila. Leg. Int. 109; 24 W. N. C. 551; 19 Ins. L. J. 82; 18 Atl. Rep. 393.

2,619. * Joshua Hendy Mach. Works v. American Steam Boiler Ins. Co., 24 Pac. Rep. 1,018; 86 Cal. 248; 20 Ins. L. J. 159.

Code, $2,617, surrender his policy at pleas|ure and reclaim a ratable proportion of the premium, unless he surrenders it under a right to do so reserved therein, or 100.— In a provision in an insurance for some of the reasons specified in §§ policy that the insurance may be termin-2,610, ated at the request of the insured by repaying the company the customary short rates from the date of the policy, together with the expenses of writing the risk, the 105.- An insurance company cannot expression "the customary short rates" cancel its policies of fire insurance by deciddoes not include the 66 expenses of writing to close its business and notifying the ing the risk." * State Ins. Co. v. Horner, 19 Ins. L. J. 837; 23 Pac. Rep. 788; 14 Col. 391.

holders that it will not be liable thereon, without returning the unearned premiums or premium notes received by it.

101.policy that the insurance may be terminated at the request of the insured by re

In a provision in an insurance* Manlove v. Commercial Mut. F. Ins. Co., 27 Pac. Rep. 979; 21 Ins. L. J. 174; 47 Kans. 309.

Subd. V. Fraud and false swearing. Iowa, 1888, § 1,731.

No. 155.

Section five.

Subd. I. Other insurance. Nos. 22, 130, 150, 157, 265.

Subd. III. Increase of hazard. Nos. 67, 88, 89, 90, 141, 146.

Subd. V. Interest of insured. No. 145. Subd. IX. Change in interest, etc. Nos. 28, 34, 93, 107, 161.

110. Minnesota. 1 Stat. Minn., 1891, $ 2,972.

111. Nebraska. Comp. Stat. Neb., 1891, p. 536, § 42.

112. New York. Cancellation at option of insured. 3 R. S. N. Y. (8 ed.), 1661; and see L. 1892, ch. 690, §§ 122,123.

113. North Dakota. Five days' notice of cancellation by the company shall

Subd. XI. Inflammable materials, etc. be given and proof of loss shall be made No. 98a. within sixty days after a fire. Laws of Vacant or unoccupied. N. Dak., 1890, ch. 74, § 1. And see Comp. L. Dak., § 3,103.

Subd. XII. Nos. 139, 150. Section nine. Warranty. Nos. 370, 457. Section ten. Agent. Nos. 83, 84, 85, 102, 107, 155, 192, 194, 196, 218, 220a, 221, 223, 224, 230, 231a, 254, 261. Section eighteen.

No. 65.

Payment of loss.

Section twenty-four. Waiver. Nos. 101, 128.

SECTION XIII.

If, with the consent of this company, an interest under this policy shall exist in favor of a mortgagee or of any person or corporation having an interest in the subject of insurance other than the interest of the insured as described herein, the conditions hereinbefore contained shall apply in the manner expressed in such provisions and conditions of insurance relating to such interest as shall be written upon, attached, or appended hereto.

New York Standard Form. New in phraseology and arrangement.

I. RIGHTS OF MORTGAGOR AND been sold, and did not pay the mortMORTGAGEES AND OTHER gaged debt, and its rebuilding is impos

Executors, administrators, heirs, (Can.)