Marshall v. Franklin Fire Insurance

Citations

• 176 Pa. 628
• 35 A. 204
• 1896 Pa. LEXIS 1120

Syllabus

<p>[Marked to be reported.]</p> <p>Insurance — Fire insurance — Perpetual insurance.</p> <p>A fire insurance company issued a policy described on its face as one “ of permanent insurance,” and in its caption called “perpetual.” The company undertook “ to be and remain forever liable to the said assured, his heirs, executors, administrators and assigns ” for any loss by fire to the buildings insured not exceeding a certain amount but the holder might surrender the policy and reclaim his deposit less five per cent. The policy also contained this clause: “In case any assured shall assign or transfer his or her policy, such assignment or transfer shall be brought to the office of the company to be entered and allowed, within thirty days next after such assignment or transfer, and in default thereof the benefit of the insurance and all claims upon the company shall be lost. For every transfer of a policy, there shall be paid fifty cents.” The policy was issued in 1839. In 1882 the owner of the property who was also an assignee of the policy took it, within thirty days from the assignment, to the office of the insurance company, tendered fifty cents and demanded that it be entered and allowed. The company, however, refused to approve of the transfer of the policy, giving as its only reason that it did not allow a transfer on old perpetual policies. Held, (1) that under the proper construction of the word “allow” the insurance company could not arbitrarily and at will refuse to allow the transfer, but that it could do so for cause, and in harmony with the purpose and spirit of the contract; (2) that if the situation, habits and moral character of the transferee were unobjectionable and did not increase the hazard of loss, the insurance company could not refuse to allow the transfer; (3) that the reason given by the insurance company for refusing to allow the transfer in this case was insufficient; (4) that the transferee was entitled to treat the contract as terminated by