Hardin v. Alexandria Ins. Co.1

• Decision Date: 18 January 1894
• Citation: 90 Va. 413,18 S.E. 911
• Court: Virginia Supreme Court
• Parties: HARDIN v. ALEXANDRIA INS. CO.1

18 S.E. 911

90 Va. 413

HARDIN

v.ALEXANDRIA INS. CO.¹

Supreme Court of Appeals of Virginia.

Jan. 18, 1894.

Insurance —Substitution of New Policy—Liability of Company—Authority of Aoent.

1. An insurance company issued a policy upon which, at various times, a number of indorsements were made, and, when the insured applied to the agent for permission to move his property, he was told as there were so many indorsements that it would be better to cancel the policy, and take out a new one for return premium at pro rata rates. The company, however, issued a new policy at short rates, which was not delivered to the insured, who was absent, but it was left for him at his place of business. The insured property was burned after the new policy expired, but before the end of the period covered by the former policy. Held, that the insured could compel the com pany to issue a new policy for the full term, and pay the loss.

2. Where an insurance company furnishes a man with all needful blanks and papers, responds to his acts, approves permits of removal given by him, and pays his rent, it is hound by his acts as its agent.

Appeal from circuit court, Wise county.

Suit by J. M. Hardin against the Alexandria Insurance Company to compel it to issue a policy to him, and pay a loss sustained thereunder. From a decree for defendant, plaintiff appeals. Reversed.

Bullitt & McDowell, for appellant.

Geo. A. Mushback and Burns & Fulton, for appellee.

FAUNTLEROY, J. The petition of J. M. Hardin represents that he instituted a suit in chancery in the circuit court of Wise county against the Alexandria Insurance Company to compel the said defendant company to issue to him, the said J. M. Hardin, a policy of insurance on a certain stock of merchandise, pursuant to a contract theretofore made by the said defendant company with him, the said Hardin, and to recover of the said defendant company the sum of $750, with interest from October 20, 1891. The cause was heard in the court aforesaid at the December term, 1892, and the decree complained of was entered, dismissing the complainant's bill, with costs against him.

The facts which appear by the record are as follows: In November, 1890, one G. W. Lovell, whose occupation was general insurance business at Big Stone Gap, Wise county, Va., went to see W. S. Reese, who told him that he wished an insurance upon his stock of liquors and bar fixtures, and asked the rate, and was told by Lovell that the rate was 3 per centum, whereupon Reese instructed Lovell to write a policy for $1,000. Lovell went to his office, where he had the blank forms and instructions of the Alexandria Insurance Company, and filled in a policy, as instructed, for $750 insurance upon the stock of liquors, and for $250 insurance upon the bar fixtures, furniture, etc., and mailed it to the "Alexandria Ins. Co., Alexandria, Va." Lovell, in a few days, received from that company a policy covering the property with insurance of $750 on the stock of liquors, and $250 on the bar fixtures, furniture, etc., in the two-story frame building, metal roof, on Wyandotte avenue, Big Stone Gap, Va., for one year from 12 m., November 25, 1890, to 12 in., November 25, 1891. This policy he delivered to the insured, W. S. Reese, and received from him the premium of $30 for the Alexandria Insurance Company. On the 2d day of December, 1890, Lovell indorsed on this policy a permit for Reese, the insured, to remove the stock of liquors to a storage house in rear of the original place, and mailed the said policy, thus indorsed, to the company for its approval. The company did approve the permit so indorsed by Lovell upon the said policy, and returned it, with itsapproval, to Lovell, who delivered it to Reese. On the 7th of May, 1891, Reese assigned this policy to J. M. Hardin, the appellant, by a writing witnessed by Lovell, who sent the said policy, so indorsed, with the said assignment, to the Alexandria Insurance Company, who approved it, and returned it to Lovell, who delivered it to said Hardin. Thus, in May, 1891, the original policy became the property of Hardin, the appellant, with the sanction of the company to the...