Mutual Fire Insurance v. Eicholtz

Citations

• 88 Md. 92
• 40 A. 706
• 1898 Md. LEXIS 170

Syllabus

<p>Mutual Fire Insurance Company— Waiver of Non-payment of Premium — Authority of Agent — Estoppel— Cancellation of Policy.</p> <p>Plaintiff, a member of a mutual fire insurance company failed to pay, when due, the interest on his premium note, but afterwards paid a sum of money in renewal of the policy for the future to an agent of the company, who was also a director, and the money was paid by the agent to the company with notice of the facts. The company had previously can-celled plaintiff’s policy by a memorandum on its books, but no notice of the same had been given to the plaintiff and the company retained the renewal premium until a loss occurred when an offer was made to return it. Held, that the company had waived the payment of the back interest on plaintiff’s note and was estopped to deny the authority of the agent to renew the policy.</p> <p>A by-law of a mutual fire insurance company provided that the secretary should cancel all policies in default for two years for non-payment of interest on the premium note. Held, that a cancellation on the books of the company of a policy in default for less than two years, without notice to the member, is of no effect and that the subsequent acceptance by the company of money paid to an agent in renewal of the policy is binding on the, company.</p>