Vasaris v. National Liberty Ins. Co. of America
| Decision Date | 30 June 1930 |
| Parties | TADEUS VASARIS v. NATIONAL LIBERTY INSURANCE COMPANY OF AMERICA. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
February 3, 1930.
Present: RUGG, C.
Insurance, Fire motor vehicle, waiver of notice. Agency, Scope of authority. Waiver.
A policy of insurance issued to a corporation and insuring against loss by fire its interest as vendor under various contracts of conditional sales of automobiles and stated "to cover the interest of Lessor and
Lessee, Vendor and Vendee, Loss, if any, to be payable to the" corporation was not a "fire insurance policy in the standard form prescribed by" G.L.c. 175, Section 99; and, therefore the provisions of G.L.c. 175, Section 102, which forbid the insurer to rely in defence upon failure to make the sworn statement of loss mentioned in a standard policy, did not apply in an action by a conditional vendee upon the policy.
While the law is settled that a definite refusal to pay a claim made under an insurance policy, which refusal is stated to be upon grounds other than the failure to meet certain required conditions, excuses failure or delay in complying with those conditions, such refusal to have that result must be made by some one who has authority to bind the insurer.
Mere evidence that an employee of an insurance company had authority to adjust one claim for loss under a policy of the company falls far short of justifying a finding that, as to another claim, he was authorized on behalf of the company to refuse payment, or to waive conditions of the policy.
CONTRACT on the fire insurance policy described in the opinion. Writ dated October 25, 1928.
In the Superior Court, the action was tried before Morton, J. Material evidence and exceptions saved by the defendant are stated in the opinion. There was a verdict for the plaintiff in the sum of $899. The defendant alleged exceptions.
C.C. Cabot, for the defendant. C.J. Kalinauskas, (L.A. Rogers with him,) for the plaintiff.
The plaintiff, on May 14, 1927, purchased an automobile on a contract of conditional sale from the L.A.W. Acceptance Corporation of Brockton. On the day of the purchase he paid $700 in cash and gave twelve notes for $166.33 each for the balance of the purchase price. He subsequently paid five of these notes. The L.A.W. Acceptance Corporation held a policy of insurance issued by the defendant which insured its interest in all automobiles sold by it on conditional sale against loss by fire, to become a risk under the policy as soon as the lease agreement was accepted by the corporation. The intent of the policy was "to cover the interest of Lessor and Lessee, Vendor and Vendee, Loss, if any, to be payable to the L.A.W. Acceptance Corporation of Brockton Massachusetts." In case of loss it provided that "the assured shall give forthwith notice thereof in writing" to the insurer, and within sixty days render a signed and sworn statement to the insurer stating designated matters. It also provided that "This Company shall not be held to have waived any provision or condition of this policy or any forfeiture thereof by any requirement act, or proceeding on its part relating to the appraisal, or to any examination herein provided for." Furthermore, it set out: "This policy is made and accepted subject to the provisions, exclusions, conditions and warranties set forth herein or endorsed hereon, and upon acceptance of this policy the assured agrees that its terms embody all agreements then existing between himself and the Company or any of its agents relating to the insurance described herein, and no officer, agent or other representative of this Company shall have power to waive any of the terms of this policy unless such waive be written upon or attached hereto; nor shall any privilege or permission affecting the insurance under this policy exist or be claimed by the assured unless so written or attached."
The corporation was authorized to issue to a conditional vendee a certificate showing that his interest in the automobile was insured under the "master policy" held by it. Such a certificate was sent to the plaintiff. It stated that the open policy was made for the benefit of the several parties in interest in the automobile and the notes made in connection with the purchase, with loss payable first to the holders and indorsers of any unpaid notes to the extent of their interests and the remainder, if any, "payable to you as the purchaser and maker of the notes as set forth in the policy." It set out that "All terms and conditions of this insurance are stated fully in the policy, which is in our possession." An abstract of some of the principal provisions was printed on it. At the bottom of the certificate was printed: "In the event of loss notify Hendrick Insurance Agency, 106 Main Street, Brockton Mass." Among the provisions printed on the back was: "It is a condition that the insurance shall be null and void . . . (e) Unless written notice of loss is given immediately after date of loss and unless sworn proof of...
To continue reading
Request your trial