Schimp v. Cedar Rapids Insurance

Citations

• 124 Ill. 354

Syllabus

<p>1. Insurance—premium note—when payable—a condition in such a note construed. A promissory note for a part of a premium of insurance, payable nearly a year after date, provided that in case of a loss under the policy it should become due and - payable on the date of such loss: Held, that if a loss occurred for which the company was liable, the note was to become due on the date of such loss.</p> <p>2. Same—waiving a right of forfeiture—accepting a maturing premium. Where a party insured has been guilty of some breach or breaches of the conditions of his policy, and the insurer, with full knowledge thereof, during the pendency of the risk, accepts a maturing premium, or does any other act recognizing the continued existence and validity of the policy, such acceptance or other act. will operate as a waiver of the right of forfeiture occasioned by such breaches, unless something appears to show it was not intended to have that effect, and the assured so understood it.</p> <p>3. But upon the delivery of a policy of insurance and commencement of the risk, an insurance company acquires a present vested right in the premium as an entirety, and a loss and termination of the risk before payment of a part of the premium, upon which credit was given, will not deprive the company of the right to receive the unpaid premium.</p> <p>4. In this case, a person in obtaining insurance against loss by fire gave his promissory note for a part of the premium, payable about one year after its date, with a clause therein making the same fall due sooner in case of a loss. A loss occurred, and at the time of the loss the company had a complete defence to any suit on the policy, based on a breach of the conditions of insurance. After suit brought on the policy, the insured paid the insurance company the premium note: Held, that the company, by receiving payment of the note on the balance of • the premium, did not, in any way or manner, abandon or waive its defence to the action.</p> <p>5. S