Ætna Insurance v. Maguire

Citations

• 51 Ill. 342

Syllabus

<p>1. Policy of insurance—of prohibited risks. Where, by the terms of a policy of insurance, it is forbidden to the agents to take certain risks, as for instance, “ distilleries and steam saw-mills,” the import of the prohibítion will be held to apply to “ distilleries and steam saw-mills” in operation, and not to buildings erected for such purposes, hut lying inactive and unused.</p> <p>2. Approval of policy—by general agent—what constitutes. A local agent of an insurance company issued a policy, which by its terms was subject to the approval or disapproval of the general agent. The premium was paid to the local agent, who, in making his monthly returns to the general office, included it in his return, and it was paid over to that officer, and a credit was given to the local agent therefor on the hooks. Soon afterward, the general agent instructed the local agent to cancel the policy. These acts Seneral agent were held to he a recognition of the existence of the policy, and to give it all requisite validity. The very fact of an attempt at cancellation, was an admission that there was a policy capable of being canceled, and it is not for the company afterwards to deny it.</p> <p>8. Cancellation of policy—what constitutes—of acts of the respective parties. A policy of insurance was issued, subject to the condition, that the company might cancel the same upon giving notice to the assured, and returning the unearned premium. The general agent of the company directed the local agent who issued the policy, to cancel it, and sent him a cancelling card to deliver to the assured. The local agent inclosed the cancelling card in a letter to the assured, whose post office was at a distance, and stated in the letter that the unearned premium was in his hands, subject to the order of the assured. Before this letter was received by the assured, the local agent saw him, told him of the letter and its contents, hut told him not to mind the cancelling card, as he would carry the ris