Reed v. Philadelphia Life Insurance

Citations

• 50 Pa. Super. 384
• 1912 Pa. Super. LEXIS 61

Syllabus

<p>Insurance — Life insurance — Illegal contract — Authority of agent— Act of May S, 1909, P. L. 405.</p> <p>A life insurance company, which accepts applications for insurance in which the applicants state that all representations and agreements are reduced to writing therein, and has issued the policies and received the first year’s premium, less the agent’s commission, is not bound by an agreement made by the agent without the knowledge or authority of the company to return the premiums and cancel the policies, if a mortgage loan for a large amount is not made by the company to the applicants within thirty days from the date of the agreement. Such an agreement cannot be enforced against the company because (1) it is not referred to in the application; (2) it is not within the authority of the agent to make; and (3) it is a clear violation of the Act of May 3, 1909, P. L. 405, which forbids rebates of premiums, and the making of any agreement as to life insurance other than is plainly expressed in the policy.</p>