Hutson v. Prudential Ins. Co. Of Am.

• Decision Date: 12 May 1905
• Citation: 50 S.E. 1000,122 Ga. 847
• Parties: HUTSON. v. PRUDENTIAL INS. CO. OF AMERICA.
• Court: Georgia Supreme Court

122 Ga. 847

50 S.E. 1000

HUTSON.

v.PRUDENTIAL INS. CO. OF AMERICA.

Supreme Court of Georgia.

May 12, 1905.

AGENT — AUTHORITY—INSURANCE—CONDITIONS OF POLICY—WAIVER.

1. A general agent may bind his principal with respect to all matters within the apparent scope of his employment. But the principal may qualify the authority of a general agent, and will not be bound by the acts of his agent beyond the scope of his authority, where the person dealing with the agent had notice of such limitations.

[Ed. Note.—For cases in point, see vol. 40, Cent. Dig. Principal and Agent, §§ 534-552, 556-503.]

2. A stipulation in a policy of insurance that "no condition, provision or privilege of this policy can be waived or modified in any case, except by endorsement hereon, signed by the president, one of the vice presidents, the secretary, the assistant secretary or the actuary, " and "no agent has power in behalf of the company to make or modify this or any other contract of insurance, to extend the time for paying a premium, to waive any forfeiture or to bind the company by making any promise or making or receiving any representation or information, " is notice to the policy holder and his beneficiary that a general agent is without authority to waive any provision, condition, or forfeiture prescribed in the policy. No person save the designated officers of the company would have such authority.

(Syllabus by the Court.)

Error from City Court of Macon; Robt Hodges, Judge.

Action by E. W. Hutson against the Prudential Insurance Company of America. Judgment for defendant, and plaintiff brings error. Affirmed.

Mrs. Effa Wickliffe, in her petition against the Prudential Insurance Company of America, alleged that on May 1, 1902, the defendant company, in consideration of a quarterly annual payment to it by Moses M. Hutson, her husband, of the sum of $20.79, issued to him its policy of insurance upon his life, she being therein named as the beneficiary; that her husband died November 6, 1902, having during his life complied with all of the conditions of the contract of insurance, a copy of which was attached to the petition; and that, before the time in which to file proofs of death had expired, the defendant company flatly denied its liability on the policy. The amount of the policy was $3,000, and this amount was alleged to be due petitioner. The following stipulations were made a part of the contract of insurance declared on:

"Grace in Payment of Premiums. In the payment of any premium under this policy except the first, a grace of one month will beallowed, during which time the policy will remain in force."

"Revival of Policy. If this policy be lapsed for nonpayment of premium, it will be revived any time within two years after the due date of such premium, as specified on the first page hereof, upon written application and payment of arrears of premiums with interest at the rate of five per cent., per annum, provided evidence of the insurability of the insured satisfactory to the company be furnished. Application for revival after two years from such date will receive, equitable consideration."

"Provisions. This policy is based upon the payment of premiums annually in advance, but if premiums be made payable in quarterly or semiannual installments, any future installments of the premium for the current policy year remaining unpaid at the maturity of the policy shall be considered an indebtedness to the company on account of this policy. Premiums are payable at the home office of the company, but may be paid to an authorized agent of the company on or before the dates when due, in exchange for official receipts signed by the President or Secretary and countersigned by a general agent of the company. If any premium be not paid when due, this policy shall be void and all premiums forfeited to the company, except as herein provided."

"Modifications, etc. No condition, provision or privilege of this policy can be waived or modified in any case except by an endorsement hereon signed by the President, one of the Vice Presidents, the Secretary, the Assistant Secretary or the Actuary. No agent has power in behalf of the company to make or modify this or any other contract of insurance, to extend the time for paying a premium, to waive any forfeiture, or to bind the company by making any promise, or making or receiving any representation or information."

The policy provided for the payment of a quarterly premium of $26.79, due on or before the 1st day of February, May, August, and November in every year during the continuance of the policy, payable at the home office of the company, in Newark, N. J., or as provided in the stipulation above quoted as to payment to an agent in exchange for the company's receipt.

The defendant company filed an answer in which it admitted the issuance of the policy and the payment of the first quarterly premium, but set up the defense that the policy had lapsed and become void because of the failure of the insured to pay subsequent premiums in the manner prescribed in the policy. On the trial it appeared that the premium falling due on August 1, 1902, was not paid on that date, but on September 11th the plaintiff paid to a Mr. Adams, who held himself out as a general agent of the company, the amount of this premium, taking from him the following receipt:

"Sept. 11, 1902. Received of M. M. Hutson twenty-six and seventy-nine/100 in payment of one-half premium due to policy #350128 August 1st, which I will forward to Co. and get the Company receipt. [Signed] C. M. Adams, Gen....