Matten v. Lichtenwalner

Citations

• 6 Pa. Super. 575

Syllabus

<p>Mutual insurance — Cancelation of agreement — Assessments—Premium note.</p> <p>A policy of insurance and the premium note given therefor constitute a contract which the parties may rescind by mutual agreement, and when such agreement is made in good faith the parties are as much bound as if the policy had been marked canceled and the premium .note given up.</p> <p>If a policy be in tact canceled, there can be no recovery of assessments on a premium note given by the insured unless a liability existed for losses sustained by the company prior to such cancelation.</p> <p>Mutual insurance — Effect of cancelation — Question for jury.</p> <p>In a suit by a receiver to recover on a premium note, an assessment authorized by the court, where the defense is that the policy had been canceled by agreement, and there is evidence which if believed would justify the jury in finding that such agreemént had been made, the court properly left the case to the jury to be controlled by their finding of two facts, namely, cancelation of the policy and nonliability at the time of such cancelation by reason of the fact that the company had collected assessments with which, or had the means, to pay losses for which insured was liable as a member of the company at the time.</p>