Hartford Fire Insurance v. Whitman

Citations

• 75 Ohio St. (N.S.) 312

Syllabus

<p>Parol contract of insurance — Differs from parol agreement to issue policy — Company not bound by acts of agent, when— Policy held by agent of company, not delivery of contract, when — Law of contracts — Lazv of insurance companies.</p> <p>1. A parol contract of insurance, as distinguished from a parol agreement to issue a policy, must not be executory, but must take effect in praesenti.</p> <p>2. In order to establish the relation of insurer and insured, in parol, as existing before the delivery of the policy, the plaintiff must' do so by full and clear proof.</p> <p>3. In the absence of such a stipulation in the application or policy as makes the actual delivery of the policy a condition precedent to the consummation of the contract of insurance, the actual delivery or non-delivery of the policy is not of itself conclusive evidence of the completion of the contract of insurance; but the unconditional acceptance of the application by the insurer is a consummation of the contract.</p> <p>4. Where there is no oral agreement for insurance prior to the policy, if a policy has been executed in form, but has not passed out of the possession of the insurer or his agent and no payment of premium has been made, the contract is prima facie incomplete; and the burden is upon the party who asserts that there is a contract, to show that the policy became operative by the intention of both parties.</p> <p>5. Where, there being no oral agreement for insurance to take effect prior to the issue of the policy, upon an application for insurance at less than the regular rate, an agent wrote up and countersigned a policy and, without parting with the possession thereof, wrote to the applicant that he had “issued” a policy, but would hold the same until he should have time to hear from his company, and the company thereafter rejected the risk and the agent forwarded the policy to the company, these facts constitute no proof of a consummated contract of insurance, although the applica