Schwarzchild & Sulzberger Co. v. Phœnix Ins.

Citations

• 115 F. 653
• 1902 U.S. App. LEXIS 4961

Syllabus

<p>L Insurance — Cancellation of Policy.</p> <p>Plaintiff held a policy of insurance, issued by defendant company, which provided that it might be canceled by either party by giving the other five days’ notice. Defendant’s agent telegraphed plaintiff’s authorized representative to cancel the policy, confirming the notice by letter, stating that defendant insisted on immediate cancellation. Plaintiff’s representative delayed acting, and entered into correspondence with defendant and its agent, in an attempt to induce them to continue the policy in force; but the notice of cancellation was at no time withdrawn or modified, and a few days later defendant’s agent again telegraphed imperative instructions to cancel immediately. Thereupon plaintiff’s representative notified it of the cancellation and procured other insurance, but before the policy had been returned to defendant the property was destroyed by fire. •Held, that under the terms of the policy the first notice operated as a cancellation, and the policy ceased to be in force five days after its receipt..</p> <p>& Same — Return of Premium.</p> <p>Under a, policy of insurance, providing that it may be canceled by either party by notice to the other, and that In case of cancellation the unearned premium shall be returned “on surrender of the policy,” it Is not essential to the effectiveness of a notice of cancellation by the insured that the unearned premium be returned or tendered before the surrender of the policy.1</p>