Northern Assur. Co. v. Standard Leather Co.

Citations

• 165 F. 602
• 91 C.C.A. 440
• 1908 U.S. App. LEXIS 4787

Syllabus

<p>1. Insurance (§ 229*) — Cancellation of Policy — Notice to Agent.</p> <p>Plaintiff gave a firm of insurance brokers general authority to procure for it insurance to the amount of $75,000 on its manufacturing plant to replace prior insurance at better rates and. terms. In pursuance of this employment the brokers applied to the local ageuts of a number of companies, some of whom, among them the agent of defendant, issued policies, each in the amount of $2,500', the premiums being charged to the brokers to whom the policies were delivered. On receiving the report of the risk defendant instructed its agent to cancel the policy, and he gave the brokers, who still retained it, notice of cancellation in five days as required by its terms, and at the expiration of that time they surrendered it, as they did other policies similarly canceled, and proceded to obtain others in their stead. Before they had procured the requisite amount of insurance the property burned. Held, that in view of their general employment and its nature, and the fact that they were still acting in pursuance thereof, not having reported nor delivered the policies to plaintiff, the acceptance of defendant’s notice of cancellation and the surrender of its policy were within the scope of their authority and terminated the risk.</p> <p>[Ed. Note. — Eor other cases, see Insurance, Cent. Dig. § 500: Dec. Dig. § 229.*]</p> <p>2. Insurance (§ 539*) — -Notice of Loss — Excuse for Delay.</p> <p>Where an insurance policy requiring “immediate” notice of loss to be given the insurer was delivered to the authorized agents of the insured, the fact that they did not deliver the iioliey to their principal before the loss, nor notify it of the contract, did not relieve it from the obligation to comply with such condition, and a failure to give notice of the loss for 30 days avoided the policy.</p> <p>[Ed. Note. — Eor other cases, see Insurance, Cent. Dig. § 1334; Dee. Dig. § 539.*</p> <p>Time for notice of loss, see n