Mutual Life Insurance Co. of New York v. Herron

Citations

• 79 Miss. 381

Syllabus

<p>I. PRINCIPAL and Agent. Subagent.</p> <p>A principal is bound by the acts of his agent, within the scope of the agency, performed by a subagent where it was understood that the agent should carry on the business by others, or the nature of the agency made subagents necessary.</p> <p>S. Same. Life insurance. General agents.</p> <p>General agents of insurance companies, authorized to contract for risks, receive and collect premiums and deliver policies, may confer upon subagents authority to exercise the same powers.</p> <p>3. Same. Creditor’s acceptance of agent’s note.</p> <p>The mere acceptance by a creditor of the note of an agent of his debtor for his debt does not release the principal.</p> <p>4. Same. Binding receipt. Embezzlement. Extension of time to agent.</p> <p>Where a life insurance solicitor received money, the first premium, from an applicant forfinsuranee, and issued the company’s binding receipt obligating it to return the money if the application was not accepted, and sent the application to the company as one upon which nothing had been collected, himself using the money, and the company declined the application and returned it to the solic. itor with instructions to notify the applicant of its rejection, and the solicitor then confessed his embezzlement to the applicant, and requested time within which to raise the money to pay him, and, without the knowledge of the company, time was granted, and the solicitor’s note accepted by the applicant, the company, the note being unpaid, was not released from liability on its binding receipt.</p>