Blanton ex rel. Blanton v. Kansas City Cotton Mills Co.

Citations

• 103 Kan. 118
• 172 P. 987
• 1918 Kan. LEXIS 200

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Indemnity Insurance — Indemnity Bond — Judgment against Insolvent Employer — Casualty Company as Garnishee. Where a casualty company in an employers’ insurance contract agrees to indemnify the insured against loss, including expenses arising or resulting from claims upon the insured for damages on account of bodily injuries to , employees, and wherein it is provided that the company shall have notice of accidents and shall not be responsible for settlements made by the employer unless authority in writing is given to the insured, excepting expenses of emergency relief, and wherein it is stipulated that the company shall investigate all accidents and defend all suits for damages unless it elects to settle the claims or suits, and the company, acting under the policy, investigates accidents and adjusts and pays claims for losses, and assumes exclusive control of the defense of suits upon the claims of employees of the insured, the contract should be regarded as one to indemnify the insured against liability, and the casualty company is therefore subject to garnishment at the suit of the employees when the insured is insolvent.</p> <p>2. Same — Case Distinguished. Carter v. Insurance Co-., 76 Kan. 275, 91 Pac. 178, distinguished.'</p> <p>3. Same — Indemnity Bond — Subsequent Modification of Agreement. The insured employers were not operating' under the workmen’s compensation law when the policies were issued, and attached to them were riders excepting the insurer from claims for compensation under that law. Before the end of the insurance period the insured came under the compensation law. Held, that it was competent for the parties to detach the rider and modify the contract by an agreement that the unearned premium should stand as insurance for compensation injuries for the remainder of the insurance year; and also held, that the evidence in the case supports the theory that such an agreement was made.</p>