Farmers & Merchants' Insurance v. Chesnut

Citations

• 50 Ill. 111

Syllabus

<p>1. Insurance—adjustment of loss, and a subsequent promise to pay—effect of. Where an insurance company, upon a final adjustment of a loss, determine the amount and time of payment, which is accepted by the assured, whereupon the secretary of the company, over his signature as such, executes at writing in the words following: “ Office of the Farmers & Merchants’ Insurance Co., Quincy, 111., March 11,1867. Your proof of loss under policy No. 24,266, is at hand this p.m., and accepted, and will be payable at this office 90 days from this date,” and delivered the same to the assured, and cotemporaneous with its execution and delivery, the secretary and general agent, in the presence of the president, verbally promised to pay him the amount agreed upon in 90 days, it was held, that this was a subsequent promise to pay a loss, the amount of which had been previously determined, and the verbal promise of the secretary and general agent, made in the presence of the president of the company, at the time of the execution and delivery of such Writing, and their express or silent acquiescence, was evidence of their intention to so regard it.</p> <p>2. Same—of a violation of a condition of the policy—its effect upon the promise. A party omitted from his written application for insurance upon a building, a statement of the fact that there was a wooden building in close proximity to that sought to be insured, but, as he alleged, he afterwards, remembering the omission, went to the agent and stated the fact to him, verbally, and the agent replied, it would make no difference: Held, if this were true, the company could not defend, in case of loss, on the ground of the omission to state the fact in the application, although the policy should declare that it would be vitiated thereby.</p> <p>3. But whether the agent was informed of such omission or not, in the manner stated, a subsequent adjustment of the loss, and a promise to pay, with a knowledge of the facts, would be a waiver