The United States Life Ins. Co. v. the Advance Co..
| Decision Date | 30 September 1875 |
| Parties | THE UNITED STATES LIFE INSURANCE COMPANYv.THE ADVANCE COMPANY. |
| Court | Illinois Supreme Court |
OPINION TEXT STARTS HERE
APPEAL from the Superior Court of Cook county; the Hon. JOSEPH E. GARY, Judge, presiding.
Messrs. SHELDON & WATERMAN, for the appellant.
Mr. JOHN A. OWEN, for the appellee.
This was an action brought by appellee, to recover from the United States Life Insurance Company, appellant, an account for advertising, contracted by one Greene, who was at the time general agent for appellant.
A jury having been waived, a trial was had before the court, on the following agreed facts:
“In November, A. D. 1871, one Samuel Greene was general agent, for the State of Illinois, for the United States Life Insurance Company of New York, having his headquarters in Chicago; that upon his order the plaintiffs advertised said insurance company in their paper, incurring a just bill of one hundred and twenty dollars ($120), and charged the same, on their books of original entry, to the United States Life Insurance Company; that subsequently said Greene was removed from his position as general agent, the same being known to the plaintiffs, and said advertising bill being unpaid; that the plaintiffs frequently called upon said Greene for payment of said bill after his removal, and he as often promised the bill of $120 should be paid; that, after much dunning, Greene agreed to obtain for said plaintiffs, in payment of the bill, a partially paid up life policy, upon the life of a person designated by said plaintiffs in said company, said Greene being in the habit, notwithstanding his removal, of soliciting insurance for said company, like any other street broker, and having no other connection with the company; that said Greene made application for such a policy, in the usual course of business, and the same was drafted, but the company officers in Chicago then first finding that said advertising bill was to be turned in to pay the premium, refused to deliver the same; that several months afterwards said Greene became a defaulter to the Evanston school fund, and absconded; that it is the general custom with life insurance companies not to allow their general agents any discretion about contracting advertising bills, except as hereinafter stated, but that in each case they must get the consent of the company before contracting any bill.
And further, that in advertising, the general agents pay bills ordered by them, and settle with their companies themselves; for instance, in case of the company allowing a stipulated sum per annum towards the advertising, as is sometimes done, the agent settles the bills, and may turn the receipts...
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