Dunham v. Citizens' Insurance

Citations

• 34 Wash. 205
• 75 P. 804
• 1904 Wash. LEXIS 337

Syllabus

<p>Insurance — Validity—Fraud—False Representations in Securing Policy — Intent. A policy of fire insurance upon a house in the course of construction is void where the owner secured the same by falsely representing to the agent the value of the house when completed and that he had already paid $1,500 on the contract price, when he had in fact paid less than $700, and such statement peculiarly within his knowledge must he presumed to have been intentionally made and fraudulent.</p> <p>Same — Representations Outside the Written Application. Such false representations vitiate the policy although not in-eluded in the written application, when fraudulently made upon inquiry by the agent, where the policy provides that it shall be void if the insured has concealed or misrepresented “in writing or otherwise” any material fact.</p> <p>Same — False Representations to Agent not Communicated to the Company. False representations as to matters material to a risk, made to an agent who had power to and did issue the policy without sending the application to the company, vitiate the policy, although they were not communicated to the company, the information relied upon by the agent being under the circumstances information to the company.</p> <p>Same — Position of Creditors for Whose Benefit Insurance is Fraudulently Secured — Defense of Fraud. Where the owner of a house secures insurance in his own name by fraudulent representations without disclosing that it was secured for the benefit of creditors who had furnished material for its construction, the creditors stand in no better position than the owner, and the defense of fraud is available to the company.</p> <p>Same — Compromise of Void Policy — Equitable Assignment of Claim — Defense of Fraud. Where an insurance company compromises a loss under a void policy by paying the owner of the premises one-half the sum claimed, without notice to creditors of the owner who had given notice of an equitable assignment to them of the amo