Hartford Fire Insurance v. Keating

Citations

• 86 Md. 130
• 38 A. 29
• 1897 Md. LEXIS 115

Syllabus

<p>Fire Insurance—Conditions of Policy Affecting the Interest of the Assured—Knowledge by Insurer’s Agent of the Character of Assured’s Title—Estoppel—Powers of Insurance Agents — Waiver of Proof of Loss—Insurable Interest.</p> <p>A policy of fire insurance provided that if the interest of the insured be other than that of unconditional and sole ownership, the policy shall be void, unless otherwise provided by agreement endorsed thereon. Held, that the meaning of this provision is that, whether the title of the insured be legal or equitable, his interest in the property must be completely vested, not contingent or conditional nor for years or life only, nor that of a part owner, but it must be of such a nature that if the property be destroyed, he suffers the entire loss.</p> <p>When at the time of the issue of a policy the insured was the purchaser of the property at a judicial sale which had not then been finally ratified, his interest in the same is not unconditional within the meaning of the above-mentioned clause.</p> <p>But if the insurance company’s agent by whom the policy is issued has full knowledge that the interest of the insured is not that of a sole and absolute owner, the company is estopped from setting up such defence in action in the policy.</p> <p>It is not necessary that the interest of the assured in the property be personal. If he holds the same as agent, trustee, attorney, &c., he has an insurable interest.</p> <p>When property is sold under a mortgage foreclosure, and the purchase money has not been fully paid, the attorney of the mortgagee has an insurable interest.</p> <p>Where the company’s agent is supplied with policies of insurance, signed in blank, with authority to issue them and collect the premiums, his knowledge of the nature of the interest of the insured in the property is the knowledge of the company.</p> <p>A clause in a policy providing that no agent shall have power to waive any of its conditions except such as by its terms m