Lynchburg Fire Ins. v. West

Citations

• 76 Va. 575
• 1882 Va. LEXIS 60

Syllabus

<p>1. Insurance Companies—Application—Parol evidence.—General rule : Parol testimony is inadmissible to vary or contradict written instruments. Exceptions exist where assured is misled by declarations of insurer or his agent; where insurer insists on forfeitures of his'own creation; where insurer, or agent, in preparing application or policy, fails to follow correct descriptions of assured; or where one uses his superior knowledge or influence to mislead the other as to the true import of the contract. Allowed, not to contradict writing, but to prevent its use as equitable estoppel.</p> <p>2. Idem—Warranty—Representation.—A stipulation on face of policy, by the assured for the absolute truth of a statement, is a warranty in the nature of a condition precedent, and on its literal truth, or fulfillment, the validity of the policy depends. A representation is a statement incidental to the contract. If false, and material to the risk, whether wilful or by mistake, the policy is avoided.</p> <p>3. Idem—Overvaluation, unless so excessive as to amount to proof of fraud, does not vitiate a policy, because the estimate is mere matter of opinion.</p> <p>4. Idem—Estoppel.—Agent’s knowledge of real condition of risk is imputable to principal, and estops latter from setting up any warranty inconsistent therewith.</p> <p>5. Idem—Construction.—In all cases of doubt, courts lean to that interpretation of representations which shuns a forfeiture of the policy. 5 Otto, 573.</p> <p>6. Case at Bar.—Merchant writing out application under direction of agent, tells latter he has no title, but only a title-bond, to the site of his storehouse, and has paid none of the purchase money. Application was for policy on the storehouse and its contents. Agent told merchant that, as the purchase money was not due, it was no incumbrance; and merchant stated in application that the property was unencumbered. The property was destroyed. In suit on policy, plaintiff testified as to his statement to agen