Traders' Insurance v. Pacaud

Citations

• 150 Ill. 245
• 37 N.E. 460

Syllabus

<p>1. Insurance — whether an insurable interest. A and B were engaged in the grain business, and were operating an elevator, wMcli was owned by A, who also owned the ground on which it was located. B advanced no money to carry on the business, but under an arrangement with A he took charge of the business at the elevator, and was to receive as a salary one-half of the profits realized out of the business. B’s liability with A to the party owning grain stored in the elevator, to hold and ship the grain to such owner.or to his order, as provided in the warehouse receipts, and his right to share in the profits in payment of his salary, was held an insurable interest upon the property, upon which he could take out a policy for his own benefit.</p> <p>2. Same — who may sue on policy. Where a party contracts for the insurance of property, pays the premium, and the policy makes the loss payable to him, the agreement to pay the loss is a contract with the person who, pays the consideration, and he will have a right of action in his own name, although the insurance.is in the name of another.</p> <p>3. A and B, the owners of grain stored in an elevator, took a policy of insurance on the grain to C, of the firm of G & D, the parties with whom the grain was stored, which policy provided that the loss, if any, should be paid to A and B, as their interest may appear. A and B alone applied for the insurance, and they alone paid the premium, and the policy was delivered to them: Held, th^t A and B could maintain an action in their own names for any loss that might occur.</p> <p>4. Same — limited interest in property insured — duty to disclose real interest. A policy of insurance provided that if the interest of the assured in the personal property should be “other than unincumbered ownership, without such fact being indorsed upon the policy, the same should be void.” The policy was to M., of the firm of M. & B., ware-housemen, with whom the property was stored, and contained a clau