M. Arnfeld & Son v. Guardian Assurance Co. of London

Citations

• 172 Pa. 605
• 34 A. 580
• 1896 Pa. LEXIS 826

Syllabus

<p>Fire insurance — Cancellation of policy — Substitution of one company for another.</p> <p>An insurance policy gave to the insurance company the right to cancel the policy on five days’ notice. The company exercised this privilege through a broker, who. acting for the plaintiffs on the second day after the notice, reinsured them for the same amount in another company. The policy of the first company was not surrendered by the plaintiffs, nor was there any formal cancellation of it, or return of any part of the premium. On the day following the reinsurance the property was destroyed by fire. The evidence showed that in effecting the reinsurance it was the intention of all parties that the second company should be substituted for the first, and that plaintiffs did not intend to increase their line of insurance. The second company paid its proportion of the loss. Held, that plaintiffs were not entitled to recover from the first company.</p>