Insurance Co. of North America v. McDowell & Brown

Citations

• 50 Ill. 120

Syllabus

<p>1. Insurance—of an over valuation. Where a policy of insurance is silent in regard to 'an./Over valuation of the property insured, the statement of the value of the property in the_applicalion for insurance, is not one which the assured warrants to be true; and where the agent knows, or can judge of the value of the property himself, and accepts an application without objection to the statement therein of the value, eveii-'if'such valuation is higher than it should be, it will not vitiate the policy.</p> <p>2.. But an over estimate of the value of the property by the owner in his application, is a circumstance which may be considered, in connection with others, to show that the owner destroyed the property for the purpose of defrauding tHe company, where that is relied upon as a defense.</p> <p>3. Same—of notice of application—what deemed sufficient notice. Where it is one of the conditions of a policy that the application must be sent to the Secretary at Chicago, before any risk can be assumed,—an indorsement upon the application, “ Authorized, Nov. 6th, 1866, at 4 per cent.,” is proof of such notice. And a subsequent recognition of the validity of the policy, by receiving the premiums, and sending an agent to investigate the loss, is an estoppel to an objection raised on that ground.</p> <p>4. Same—of failure to endorse consent on policy to effect other insurance—incumbrances. Where several policies of insurance were effected with one person, acting as the agent of the several companies, the object and purpose of endorsing consent on the policy was fully secured. And an endorsement upon the policies, that the loss, if any, would be paid to persons holding the incumbrances, was notice of such incumbrances, and the companies cannot avail themselves of the negligence, if any, of their agents, as against the bona fide assured.</p> <p>6. Same—increased hazard from repairs—effect of. An increase of hazard only suspends the policy while it continues; the liability is