North British & Mercantile Insurance v. Steiger

Citations

• 124 Ill. 81
• 16 N.E. 95

Syllabus

<p>1. Insurance—agents knowledge of change of appliances, as a waiver of the question of the increase of risk thereby. A policy of insurance provided that if the insured premises should at any time be occupied or used so as to increase the risk, the policy should become void. After the giving of the policy, and before any loss, a fire-dryer was substituted for a steam-dryer used in the building insured, in making hominy and meal, which the’ company claimed increased the risk. On the trial in an action to recover for a loss, the court instructed the jury, that if the existence of the fire-dryer in use in connection with the insured property was known to the agent of the defendant company before the loss by fire, and the company did not cancel the policy, then the company waived the right to insist, on the trial, that the use of such dryer was in violation of the condition of the policy: Held, that while the instruction might not be technically correct, in omitting to submit to the jury the question of the agent’s knowledge of the increase of the risk, the rule in respect to the question of waiver was correctly given.</p> <p>2. Same—over-insurance—knowledge of agent as a waiver of condition. If an insurance company, with knowledge on the part of its agents that a party has already insured property for a greater sum than it allowed, or if such agents are chargeable with notice of such over-insurance, and after-wards deliver to him a policy on the same property, containing a clause against over insurance, this will amount to a waiver of the condition as to over-insurance, and the policy will be good, notwithstanding such over-insurance.</p> <p>3. Appeal—reviewing facts—and what is a question of fact. Whether the substitution of a “fire-dryer” in the place of a “steam-dryer” in a hominy mill increases the risk of an insurance company insuring the mill and machinery, etc., is a question of fact, and the decision of the Appeliate Court in relation thereto is final.</p>