The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1898-10-08
A Snnnd Cnmmnn-Sense nncIsion.

A S00n0. OOlninon-ccnct DcCicloh.
Few rulings Of the state supreme
court have involved greater general
interest to the people of Missouri than
the decision Of Judge Wm. Q. Marshall
in the Nickel insurance case. In this
decision Judge Marshall brushes aside
the t~echnicalities behind which insur-
ance companies have 50 successfully
evaded responsibility, and decides the
case on the broad principles Of right,
Justice aud common sense.
In 1894 S. NJ. Nickel, q Linn county
merchant, lost his stock Of goods by
fire. lie carried . policy in The Ph@uix
Insurance Company % Brooklyn. The
fire destroyed the entire stock. A few
DAYS after the disaster Nickel went TO
the local agent Of the company who had
taken the risk, collected the premium,
and, 10 fact, transacted all the business
between Nickel and the company, and
asked for information as TO how to pro-
coed in noticing the company Of the
loss. The agent told Nickel there was
no necessity to maze a proof Of loss;
that the company's adjus.er would be
there in a few days and settle with him.
The adjuster friling TO come, Nickel
again spoke 10 the local agent and was
again assured that it would be all right,
and he wrote a letter to the company,
telling them Of the loss, and gave 1t 10
Nickel, who mailed it. Failing to hear
from the company, Nickel finally en-
ployed an attorney, who made out proof
OF loss in proper form and forwarded Ii
to the Chicsgo Office, but not until after
the time specified in the policy for
notice Of loss he'd expired. The CON-
pany refused to pay because the proofs
of loss were not received within the so
days specified In the policy. Nickel
brought suit for the amount named in
the policy. The last went throught the
circuit court and the Kansas City court
Of appeals, and was taken to the
supreme court.
Judge Marshall wrote the opinion Of
the supreme court.
In a vely full and elaborate opinion
be shows clearly that the powers Of
the local agent are not limited to
sseffecting tne insurance, countersign-
ing the policy, collecting the premium,
waving forfeltures, extending the time
Of payment Of premiums and like
which occur prior to q loss, bot that
such local agent has the power to
represent the company after loss when
the benefits for which the assured has
paid in the shape Of premiums are to
flow from the company to the assured,
as well as before the loss when the
premiums flowed from the pockets OF
The assured into the Golfers Of the
insurance company"
Judge Marshall further held that
such local agent was 2 general agent,
and not a mere special agent having
power to act only when the company
was 10 be benefited.
In closing his opinion Judge Mar
shall said. ale insurance companies
doubt the ability or honesty Of their
local agents TO represent them after
loss, they should distinctly provide 10
their policies 10 whom and where the
proofs of loss should be sent. The
courts ought not 10 be asked to indulge
prescriptions Of want of authority 10
said local agent 10 aid the company ID
technically avoiding liability after the
rich harvest Of years Of premiums has
been garnered and enjoyed. The
weight Of authority, of analogy and o.
reason and justice supports the author
ity OF such local agent TO waive proc
Of loss, either In writing or by parol
or by matters in pals VT ich amount u
an estoppel."
This case is tine first one Of its kin'
to reach the supreme court. Judg'
Marshall's decision lays down a rule s.
just and fair that Ii cannot be so ,cess
fully attacked or criticized. 1t vii
effectively put a stop TO the vexatlou
delays aud heavy losses which have s
often been sustained by citizens Of thi
state who by reason Of mere technicalit
have been prevented from c~ollectin
from the insurance companies th
amounts justly due them. The peopI
of Missouri are TO be congratulate
upon having this important suestiO
set at rest in our state.