American Credit Indemnity Co. v. Jung

Citations

• 195 F. 177
• 115 C.C.A. 129
• 1912 U.S. App. LEXIS 1357

Syllabus

<p>Insurance (§ 511*)—Credit Indemnity Insurance—Contracts—Construction.</p> <p>A credit indemnity policy insured against loss not exceeding $4,000 on accounts against persons rated by a mercantile agency above an initial loss borne by the indemnified of 2% per cent, of his gross sales not less than $180,000. A rider prbvided for losses on unrated debtors, and declared that the gross amount covered.on any one debtor should be 75 per cent, of $500 gross indebtedness, and that the aggregate losses recoverable under the rider should be 75 per cent, of $4,000, and that the amount of the initial loss should be calculated on the net losses under the rider and policy. Held, that, the policy and rider constituted one contract, and under it the liability of insurer was limited to $4,000 ou both rated and unrated .accounts, and the liability on unrated accounts did not exceed $3,000, and the net amounts of losses covered by the rider must enter with the net amounts of all other losses covered and proven under the policy in calculating the amount from which the initial loss must be deducted, and, where the agreed initial loss exceeded the aggregate amount of the net covered and proven losses so ascertained, there was no sum due to the indemnified.</p> <p>[Ed. Note.—For other cases, see Insurance, Cent. Dig. §§ 1296, 1297, 1299; Dec. Dig. § 511.*]</p>