Farmers National Bank v. Delaware Insurance

Citations

• 83 Ohio St. (N.S.) 309

Syllabus

<p>Written provisions in contract — Control over printed provisions, when — Power of agent to waive provisions of contract — Authority of agent for insurance company — Verbal waiver will not bind principal, when — Principal bound by ratification, when — Courts construe contracts to give them effect, if possible — Contract of doubtful meaning — Construed in favor of party — Dealing with those who prepared the contract.</p> <p>1. Where there is a conflict between any of the printed provisions of a contract and those inserted in writing at the time the contract is executed the latter will control.</p> <p>2. An agent having power to waive in writing certain .printed provisions of a policy of insurance has authority to write into such policy conditions and provisions in conflict with the printed provisions that he has authority to waive, and such written provision will be held to be a waiver in writing of any such printed conditions in direct conflict therewith.</p> <p>3. Where an insurance company has given authority to its agent to make, execute and deliver a policy of insurance, but has not given authority to such agent to make a later verbal contract waiving any provision of the policy, a verbal contract undertaking to waive any provision of the policy will not bind the company. But the company will be bound if with knowledge of the facts it ratifies such act of the agent; and this may be done by the company by its direct acts which show such ratification or indirectly by conduct.</p> <p>4. Where an insurance policy stipulates that the violation of certain of its provisions will release the company issuing it from all liability thereon, and the agent issuing the policy is advised of acts of the insured claimed to be in violation of such provisions, and such policy is returned to the agent, and the company is notified by the agent of the act complained of, it is the duty of the company to act within reasonable time and to return either the unearned premium or the poli