Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1891-05-28
Insurance Through Brokers.

~ oidre Insurance. N0 al "se
and yard lines are now placed
brokers, and the amount of in
% is about the only detail with
,he heavy insurer concerns him
o. foree of circumstances the in
- companies must transact their
through the medium OF agents,
ne broker OF today stands to the
q a in the same relation that the
Vi holds to the company.
4. relation carries with it some liabil-
and responsibilities not known to
" id order Of things.
CID !, uell settled to be law that per-
.ho makes it his regular business to
others to insure in certain insur-
companies, or who makes it his
,sss 10 receive applications for such
nance, is the agent OF those COM
Is and not Of the persons securing
.,oce On the other hand, it is
Mn we'll settled that person who
ois. - 4 his business to secure insurance
Individuals, irrespective OF the COM
,ss from which it is secured, is an
,td the individual and not OF the
.mny. The matter of agency is de-
mined by the interest which the agent
ssputs. and no person will be per-
Nod to represent both parties to a tran
him. when the opposing interests con-
rse insurance companies, from time
fine, have Incorporated in their poll
6oy uroyisions somewhat varied in
NJ nYoogy but all having for their pur-
\ The making Of all persons accepting
=. neying applications for insurance,
81 ns Of the insured and not of the COM
~, This was for the purpose of avoid
the responsibility of the company for
acts Of the agent. This was promptly
of by the courts, which holds that at
M place where the companies desire
tsnsact business, they must have
preventative with power to do the bust
they ask the public to transact with
I'm.
The agency Of broker is of limited
3pecuiar nature. Unlike the agent
The company, he is not an agent with
|nsnl power, for the mere employment
lone to procure insurance is terminated
hen the insurance has been procured.
1.-THE case Of the agent of the company,
Is the agent for all purposes, and |
\ Qie to him OF anything which the
aay requires is legal notice to the com
ny. But the broker who is employed |
reflect insurance, terminates his legal !
unstion with the insured by the full
lmsnt Of the terms of his agency. He
power to do whatever may be neces
: u to effect the insurance, and to thai
' II may enter into agreements which |
ebnding upon his principal, but az
mas the contract is completed his
ser is exhausted. 1t is upon this point
at much Of the litigation growing out
q brokerage contracts arises. The in
nance agents, being themselves bound |
The strict rules OF the general agency, |
Oollen attempt to apply those rules 10
broker, and serve cpon him notice
nrh, we're he general agent, would |
'nd the principal. One of the most fire.
Rnt attempts Of this nature arises oul
cancellations. A broker, having
paced line, the agent, when notified to
|acel OF, as natural course goes to the
pker and notifies him. If the broker
mot at the time OF such notice re-
'ed to his principal, it may be that
notice is good, but if he has reported
Rlnsurance effected, the notice is abso-
IVY valueless. An agent employed to
ecs insurance has no power to cancel il
Ae' ellectlng it, unless specially author
Ro to do SO, and notice from the COM
sny that it has been cancelled is not
ven 10 the insured by notifying him.
was distinctly held by the supreme
wit Of Pennsylvania that the provisions
policy of insurance that eff any
oxer or other person than the assured
Wy nave procured this insurance to be
ven ne shall be considered the agent
"e company" referred only to per-
10y doing business on their own ac-
W.T. and not to agents of the company,
mat the relation of Principal and
ssns between the broker and his en-
wer necessarily terminated upon the
''O'mance Of the duty imposed by the
ency.
ine broker takes a vast amount of de-
y nom the shoulders of the large in
Ael' out the companies have sometimes
"snt 10 give to him an Importance not
uc'loned by the law. The manufacturer
4 merchant who intrusts the selection of |
r. companies which shall have his in
[4ance to an agent, does not thereby |
r''s In the hands Of that agent tho sole
|'a'ract OF his insurance. The moment |
u insurance is effected, just that moment
Il agency terminates, and the insured
[',us IN direct relation to the company,