The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-11-12

The American Insurance company
of Chicago is Beaten I'm tts Pre-
mium-Note suits-weIeome News
Asa Michigan.


loT tue fedSOu iuhb III Cdplth ulu uoA
square with our laws. IL had borrowed
outside securities for the purpose Of
making it's stock appear solid, and
large sums Of borrowed money were
not returned by il as liabilities.
Since that time 10 new policies have
been lawfully issued to Michigan par
ties; but the company has instituted
hundreds of snits against those who re-
fused To paw further tribute. In Ing
ham county there are many suits now
pending before the circuit court, cspec-
tally from the southern townships. In
Cass county we learned recently that
over 80 writs had been served upon
parties in n single township. requiring
them to pay their old premium notes
But they will have no further trouble
for in the case of Charles =. Yost va.
the American insurance company, APP
pealed by Mr.. Yost from justice and
circuit courts In Wayne county, our
supreme court has most effectually
"sat down" on this company, aud de-
clared its system OF taking five years
notes aud giving but one years valid
insurance to be inequitable; aud that
the company will mot be permitted to
collect the premiums at it's option
while avoiding all risk" We copy the
decision in full. Ii Is written 10y
Judge Msrstcn, and signed by ell the
judges:
Charles S. Yost VS.. American Insurance Co.
Suit was brought to recover the
amount claimed TO be due March /,
1877, upon an installment note given
Feb. II, 1878, by Yost to the insurance
company, for policy OF insurance is
sued on that day. Judgment was re-
covered upon the note by the insur-
ance company in justice court, which,
upon certiorari TO the circuit, was af-
frmed. The case comes here upon er.
ror. The facts were agreed upon, and
are as follows:
Feb. II, 1875, by request Of one OF
this company's agents, Yost took pol
icy OF insurance, In the usual form, IN
suring a building for $500. He paid
Sl.50 in each. and gave a note promis-
ing to pay the company 81 so for four
successive years (l676 to l679inclusive)
on the LIST day OF March in each year.
! The note was unconditional, but the
/ policy provided that in case Yost
should fail 10 pay any annual install
ment OF sl.50 within 80 days after it
/ became due, then said policy should
be void during the continuance OF such
| default; but on payment of the 81 90
| due said policy should revive and he
| IN fall force. Yost made only the firsl
payment in cash, for in February, 1876
before the first installment on the note
became due, the company was prohib'
tied from doing business in this state
by the insurance commissioner.
The policy Of insurance and the note
upon which this action was brought
constituted but one transaction, and
must therefore be considered together
The promise or agreement made by the
insurance company was contained ol
set forth in the policy. while that o
Yost appeared in the note.
The agreement in the policy. as tC
the time il should continue in forc'
aud bs operative, was materially diff
ierent from that usually found in tim'
policies. Whether this policy contain
ed the usual clause, giving the com
pany the right to cancel 1t upon notic'
at any time, on returning the unearne,
premium, does not appear, nor is i
material in this case. The policy whe'
first issued was not an unconditiona
five. year policy,-one which would re
main in force for that length OF time
unless sooner cancelled on account q
some change in the situation OF th
property or otherwise. At the expira
ton OF the frat year, or within 30 day
thereafter, according 10 its expires
terms, IL became void, and ceased :
have any force or validity whatever. =
not for a day, a month, or n year, bu
/ indefinitely, for all time. At the q
piration of the period mentioned, witt
out any act Of either party, by fore
I alone of its own provisions, IL becam
void. In case Of destruction by fir
Of the property described therein, th
company would thereafter be under n
obligation. legal or equitable 10 pa
: the amount or any part thereof. nC
/. could they under such circumstanc,
call upon the insured for installmen
8 accrUing or becoming due his noI
i thereafter.
The insured, however, after the pol
d, cy should become void, had the rIgl
y 10 step in, pay another installmol
=" upon this note, aud thus revive az
bring again into full force the polio
n NOT, however, for tue unexpired po
n ton of the five years, nor even for or
year from the date Of such paymen
but for the unexpired portion OF tl
e year for which such payment constitu
a ed the premium. So this policy mig
n each returning year come to an en-
its term Of existence expire, subjeC
however, at some uncetain future p
l. rod TO again spring into life for
{! short time, upon the happening OF
'e contingency.
What, then, is the fair constructs
-, Of these instruments? Was ID an abs
lutte insurance Of the property for Il
- years from the date OF the polio
n" n" Clearly not. IL was an absolute insu
y ance for but one year, with the right
At the insured 10 have il kept in for
4. from year to year, in all not exceedi
a five years. by paying an animal pl
mium thereon. The contract, 30 da
after the expiration Of each year. unle
ct the premium was sooner paid, termi
a ated, aud it required q positive act
ig at least one Of the parties its terms
es clared that upon non-payment OF an
stallment. or Of the annual premiu
=. il should become void, at the option
~ the company during the default,
- would perhaps be somewhat diferel
~ but such is not this case. IL is eertS
u but for one year. Beyond that Il
90 uncertain aud contingent. IL is an
susance of the property for one We
Is. which may be continued and kept
nd force from year 10 year thereafter,
10. paying an annual premium, not exec,
m. ing In all s.period OF five years fr'
n the date thereof.
The action in this case was 90
menced some months or upwards al
he the time il is claimed the installml
lat was due aud payable. During all q
I'm time there eau be DO doubt that
on company vnuld not have been liable
in case Of a loss. Assuming what perhI
ret might admit Of doubt, that the co
uencement Of the sction would oper
az revivor Of the policy, 'it woI
iv- then remain in force for the unexpiI
Ter portion Of that year, and for 30 d'
De. thereafter, but no longer, unless
I'd next ipstsllnsnt was pad. Uu'
isf sach. ). .cirpunstspces. the comps
70. would recover the full instsllnhe
With interest thereon, being the
preninm,. with -interest thereon,
one year; yet the insured during I
,as same ..pertod you'd have had but
Try ma ths pfotscsisn. -
,ad lei us carry Il farther. Suppose
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