Reaper City Insurance v. Jones

Citations

• 62 Ill. 458

Syllabus

<p>1. Insurance—waiver of condition. A clause in a policy of insurance sued on made it void if gunpowder was kept in the building insured without written permission, and it further declared nothing less than a distinct agreement, indorsed on the policy, should be construed a waiver of any condition or restriction. The assured, at the time of the loss, had a few pounds 0f gunpowder kept with the knowledge and express permission of the local agent of the company. A previous policy had been issued by the same agent upon the same property, and all premiums had been paid and accepted by the company, and the agent knew that powder was kept, and expressly permitted it without calling the attention of the assured to this clause in the policy: Held, that the failure to have the written consent of the company indorsed on the policy, under such circumstances, did not render it void, but that the condition would be regarded as waived.</p> <p>2. As the provision of forfeiture was made solely for the benefit of the company, it might waive the condition, and as it performs its business through agents, their acts must often operate as a waiver of conditions in a policy. The company being presumed to have knowledge of the facts through their agent, hv taking the money of the assured, and giving him no notice that the policy had been violated, or that the contract must terminate, before his loss, will not be allowed to resist payment for such cause. Such an act would he a fraud and a deceit, which the law will not sanction.</p> <p>3. Same—notice of conditions. When the agent of an insurance company takes an application of insurance, knowing that the assured is keeping interdicted articles prohibited by conditions usually printed in small type and difficult to read, and gives no notice to the assured of the stringent character of such conditions, hut consents to the keeping of such articles, the company will he held to have waived the right of forfeiture.</p>