Farmers & Breeders Mutual Reserve Fund Live Stock Insurance v. Elliott

Citations

• 69 Pa. Super. 509
• 1918 Pa. Super. LEXIS 431

Syllabus

<p>Insurance — Live stock insurance — Premiums—Sale of live stock —Death of live stock — Failure to pay loss — Cancellation.</p> <p>In an action to recover premiums on policies of live stock insurance covering a number of horses for five years, where it appears that the policies provided the premiums should be paid quarterly and that the policies should be void if the horses were alienated or sold, an affidavit of defense is sufficient which avers that seven of the horses died during the first period in which the insurance was effective, that due notice of the loss was given, and a demand for payment was made for the insured value of the animals which was in excess of the amount of the premium for which suit was brought; that the company declined to pay; that the policies were then duly surrendered for cancellation; that eleven other horses had been sold while the insurance was in force, and that by reason of these sales the policies were void, and that no premium could be due after an animal had been sold.</p> <p>Under the provisions of such a policy the insurance company cannot recover premiums on account of insurance for either the animals sold or for the animals dead for the remainder of the five years after their sale or death.</p> <p>It was not incumbent on the insured to pay the premium due when the company already owed him more money than the premiums amounted to. When it continued its attitude of nonpayment of the insurance due on the death of the animals, the insured could very well consider the contract ended.</p>