Miller v. Northwestern Mut. Life Ins. Co. of Milwaukee

Citations

• 111 F. 465
• 49 C.C.A. 330
• 1901 U.S. App. LEXIS 4399

Syllabus

<p>Life Insurance—Creation of Contract—Authority of Local Aoknt.</p> <p>An application for life insurance was made and delivered to a local agent, containing a clause that no statement or representation made by or to the agent should be binding on the company unless reduced to writing and approved by its officers at its home office, in another state. The applicant gave his check for the amount of the first premium to the agent on the statement of the latter that if he did so the insurance would be in effect from that date, but that the company would have to approve the application. The application and check were forwarded to the state agent, who retained the check and sent the application to the company, Which wrote for further information in certain particulars. In reply the applicant wrote directly to the company, giving such information, and stating that if not satisfactory it should consider the application withdrawn and return his check. The company rejected the application, and so advised the state agent, who wrote the local agent, notifying him of the fact, and returning the payment received. On the day such letter was written the applicant died, hut neither the company nor the state agent had any notice of his sickness until after his death. The executor refused to accept repayment of the money, and sued to recover the amount of the insurance. Meld, that no contract of insurance, was made; that the local agent had no authority, either actual or apparent, to make the same, even if he had attempted to do so, and the applicant evidently understood such fact, as shown hy his letter asking the company to consider his application “withdrawn” if his statement was not satisfactory, and was not misled so as to create any estoppel against the company.</p>