O'Brien v. New Zealand Insurance

Citations

• 108 Cal. 227
• 41 P. 298

Syllabus

<p>Eire Insurance—Application by Saloonkeeper—Authority of Local Agent—Liability of Principal.—Where an application for fire insurance upon a saloon and fixtures was made by a saloonkeeper to the defendant’s local agent, who, under his commission as agent, had no authority to enter into a contract of insurance, but who was appointed as a subagent merely to receive proposals for insurance, and fix rates of premium, and receive money for policies and certificates of insurance, and who knew that the insurance company did not take insurance upon saloons, the company is not liable for loss of the property by fire between the time of the making of the application and the time of the mailing of it to the company for its approval.</p> <p>Id.— Statement by Local Agent without Authority—Beginning of Insurance.—Where the local agent told the plaintiff that he had no power to write policies, and that the application would have to be forwarded to the company, and he had neither actual nor ostensible authority to make a contract of insurance, the fact that at the time of the application he told plaintiff that his insurance would begin at that time, could not bind the company to any contract of insurance as of that time, and could only mean that the policy would take effect as of the date of the application, if the application was accepted by the company.</p> <p>Id.—Delegation of Authority by Special Agent.—A special agent of an insurance company who is not authorized to enter into contracts of insurance cannot delegate authority to a subagent to enter into such contracts.</p>