Gettins v. Scudder

Citations

• 71 Ill. 86

Syllabus

<p>1. Tbxjstee—negligence in selecting company in which to insure trust property. Where a deed of trust gives the trustee full power to select the company or companies in which to insure the trust property, he will be required to exercise due care in the selection of good and solvent companies, but he will not be a guarantor of their solvency.</p> <p>2. Aqexcy — liability for insuring property in company which fails. An insurance agent, acting for a trustee in procuring an insurance on the trust property, who procures policies in companies which are solvent, or generally so considered and dealt with, and refuses to insure in the companies requested by the grantor, will not be liable to the grantor in an action for a loss, caused by the subsequent insolvency of the companies selected by him.</p> <p>3. In such a case, where the agent told the grantor in the trust deed that he would insure in the company for which he was acting, and the grantor objected, and notified him that he would hold him responsible if he did, and the agent acting for the trustee insured in- other companies, then reported solvent, in good faith: Held, that the agent could not be made liable for not insuring in the company first named by him.</p>