Shepherd v. Virginia State Insurance

Citations

• 120 Va. 383
• 91 S.E. 140
• 1917 Va. LEXIS 118

Syllabus

<p>1. Fire Insurance — Insurance Fund — Foreign Insurance Companies.—A domestic insurance company, holding a contract of reinsurance on risks outside of this State with a foreign company doing business in this State, is not entitled, in case of the latter’s insolvency, to be classed as a policy holder and lienor under the provisions of section 17 (chapter 2) of the Virginia insurance act (laws 1906, c. 112). The general plan or scheme of that act was to provide that policies should be issued on property in Virginia only through regular agents residing in Virginia, and such policies only were intended to be protected by the deposit with the State Treasurer. The pur- ' pose of the legislature was to protect property owners in their fire insurance contracts, and not to protect other insurance companies on their contracts of reinsurance.</p> <p>2. Fire Insurance — Contracts of Reinsurance — “Policy” — Contracts of reinsurance are not infrequently designated as “policies,” and they' are doubtless properly so called) but, unless there is something in the context to indicate reinsurance, the use of the term “policy” in reference to fire insurance business naturally suggests, and will be understood as meaning, the far more usual and commonly known contract of insurance for the protection of a property owner against loss of his property by fire.</p>