Hey v. Guarantors' Liability Indemnity Co.

Citations

• 181 Pa. 220
• 37 A. 402
• 1897 Pa. LEXIS 531

Syllabus

<p>Insurance — Definition of accident.</p> <p>An accident is an unusual or unexpected result attending the operation or performance of a usual or necessary act or event.</p> <p>The exception in a policy of insurance of one from a number of like causes of damage to or destruction of property is a recognition by the insurer of its liability for loss arising from other causes of the same nature.</p> <p>An insurance company is presumed to know that which is obvious in regard to the property insured, including the natural perils to which it is exposed.</p> <p>In the absence of express stipulation and where no inquiry is made, a failui’e to state facts known to the insurer or his agent, or which he ought to know, is no concealment. The insurers are presumed to be skilled in their business, and to know those general facts which are open to the public, and may be known to all who are interested to inquire.</p> <p>An insurance company agreed to indemnify the insured against all loss arising from any accidental damage to or destruction of a stone mill and warehouse, etc., “ excepting only damage to or destruction by fire or lightning.” The property wasinjured “by reason of a sudden rise of the water ” in a river upon which the property was situated. In an action upon the policy the insurance company filed an affidavit of defense in which it averred that the injury did not arise from accidental damage to or destruction of the buildings, and that the insured did not state in his application for insurance that the property insured was on the bank of a river. Held, (1) that the destruction of the building by flood or freshet was accidental and within the terms of the policy; (2) that the insurance company must be presumed to have known the situation of the property and the natural perils to which it was exposed; (8) that the insured was guilty of no concealment or misrepresentation in not stating in his application that the property was on the bank of a river; (4) that the affida