Daily Los Angeles herald., 1881-04-16
INSURANCE DECISION.
Important Opinion by Judge volnsy e. How
ard II tho Gilmore Case,

from the evidence that Mr.. Philip
was agent of the Lycomlng and
the American Central, and at the
same time issued two policies, one
for the Lycoming and one for the
American Central for $3.50 each.
| The Lycoming in terms con.
tained no representation by
the assured except the sur
vey and plan and an en-
dorsement attached to the policy
as follows: ut is agreed and under
stood that the building covered by
the policy is on leased ground for
three years; that said building is at
present vacant, but it is agreed
with the assured that q night
watchman will be kept on the
premises whilst they remain unoc.
cupied." 1t is, however, insisted
by the defendant that the repre-
sentations made at the same time
In policy for the American Central
were also made to the Lycoming.
This is testified to by the agent Of
the defendant and positively de.
MED by F. Gilmore, son and agent
of the assured, who negotiated the
policy.
The answer Of the defendant, a
part of the representations of the
assured, relied on In this case as
warranty, contained the following:
"Statement to be signed by the
assured.
The entire occupancy of the
premises Is:
l. Basement.
1st Floor lodging house.
I'd Floor lodging house.
Sd Floor lodging house.
4th Floor lodging house.
2. Ground size of building SO by
130.
8. Any steam or other power? No.
4. Is the building on leased
ground? Yes.
s. If so, how long has the lease
to run? Three years.
6. Present cash value of property
insured? $4,000. Building7 $500;
stock s..
7. Is It mortgaged; il so for what
sum? $500.
8. Any insurance by mortgage?
9. Is there any other insurance? =?
$3.50.
10. II so to what amount? $3.50.
Give names of companies,
amount and rates Of insurance.
American Central.
IL. Are you the sole owner OF the
property, buildings and stock?
IL. Average value Of stock?
13. Are regular accounts kept?
ii. How often is. inventory
taken?
Is. Are pipes and fues perfectly
secure, and ashes and matches
safely cared for? Yes.
l6. Have you any reason to fear
iucsndiarism? No.
Il shall treat these answers as
having been made in obtaining
the policy of the defendants, the
Lyooming, because as the defense
relied on 10 fraudulent conceal NJ ent
by the defendant, 1t 10 immaterlal
whether answers are to be regard.
ed As establishing q warranty or
fraudulent ooncealment, because II
found fraudulent they avoid the
policy without reference to a war
ranty.
Planters Insurance Company
Va. Myers, 80 Am. Reps. 522
But as the answers made In the
Am erican Central are not referred
to In the policy sued on they cam
not amount to q warranty in the
Lycomlng. The representations in
the Lycoming have been incorpo-
rated In the policy of that COM
pany, as q warranty cannot be
varied or enlarged or added to by
parol.
The general principle of con.
tracts Of insurance Is thus stated by
Chancellor Kent:
"The insured is bound in good
faith to disclose to the insurer
every fact material to the risk
and within his knowledge, and
which il stated would influence the
mind of the insurer in making OF
declining the contract"
3 Kent, Az.
The mutual obligations of the
parties is stated thus by the SUI.
prenae Court Of the United States,
Clark's Manufacturing Insurance
Company, 8 Howard 249: III
the insurer asks no information
and the insurer makes no repre-
sentations, it must be presumed
that the insured In person or by
agent In such such case obtained
all the information desired as to
the insured premises, or ventures
to take the risk without 1t, anC
that the insured being asked moth.
ing, has o right to presume that
nothing on the risk is desired from
him.
"This rule must not be misappre
hended and supposed to rest on O
principle different and somewhat
ordinary, that insurers are always
to be expected to possess somt
general knowledge Of such natter
"a they deal with" Ib.
"But when representations ar,
not asked or given, and with only
this general knowledge the insur'
or chooses to assume the risk, ht
must In paint Of law be deemed tC
! do it at his peril. It has been just
| ly remarked. in q case some ewha,
like this In principle: with this
knowledge and without asking {
question the defendant underworld
and by so doing he took the knowl
edge Of the state Of the place upor
himself. But as t,
ordinary risks connected with tn,
property Insured, II no representa-
tions whatever are asked or given
the insurer must, as before remark
ed, be svpposed to assume them
and II he acts without inquiry any
where concerning them, SEEM
quite as negligent a. the insured
who is silent when not requested
to speak.'n Ib. $50.
It 10 earnestly urged that th'
plaintiff had no insurable interest
It cannot we'll be doubted tha
the insured had an insurable inter
| nat In tho prOnorfu