Union Ins. Co. v. Am. Fire Ins. Co.

Citations

• 107 Cal. 327
• 40 P. 431
• 1895 Cal. LEXIS 754

Syllabus

<p>Pire Insurance—Contract for Reinsurance—Effect of Prior Loss.— Where an insurance company, which has insured the property of a lumber company against loss by fire, contracts for reinsurance by way of partial indemnity with another insurance company, in the absence of any circumstances indicating the mutual intention of the parties to give to the contract of reinsurance a retrospective effect, the company agreeing to insure is not liable if the property insured had been destroyed by fire prior to the agreement, though at the time of the application and agreement neither of the insurance companies knew of the prior destruction of the property.</p> <p>Id.—Date of Insurance.—The general rule is that a policy of insurance, if delivered, takes effect from its date, unless it be otherwise stated, or unless there is evidence of a contrary intent.</p> <p>Id.—Contracts—Known Usase of Trade—Custom of Fire Insurance Companies—Premiums.—Where there is a known usage of trade, persons carrying on that trade are held to have contracted in reference to the usage unless the contrary appears, and the usage forms a part of the contract; and where it appears that it was the custom among fire insurance companies granting reinsurance to charge and collect premiums as and from the date of reinsurance, and to write their policies so as to cover the reinsured company from the date of reinsurance, the contracting companies are presumed to be familiar with their customs, and, in the absence of a showing to the contrary, to have contracted with reference to them.</p>