The Oskaloosa herald., 1904-12-22
FIRE INSURANCE CASE
Judge Scott's Findings Reversed by
Supreme Court.

Des Moines, Dec. 19.-The supreme
court decided Saturday that the pow
er of a fire insurance agent cannot be
limited by the provisions of the con
tract which he writes.
This is the construction given to
| Section 1850 of the code, and the
court says in so many words:
"The legislature enacted the stat
ute, undoubtedly, for the express pur.
pose OF prohibiting the limitation OF
the agents power by provisions in
the contract"
A petition for rehearing will be
filed at once. The case in which the
decision was made was that of the
Liquid Carbonic Acid Manufacturing
company against the Phoenix Insur.
ance company Of London. Judge
John T. Scott in the Mahaska district
court directed a verdict for the insur-
ance company, and the plaintiff ap-
pealed, securing a unanimous reversal.
The fire policy in controversy was
written in 1901. 1t contained the US
ual conditions that the policy should
become void If the insured property
should be mortgaged, or If any per-
sons than the insured had or should
acQ4ire interest to or lien upon the
property or any part of it. And 1t
also provided, as usual, that the con-
ditions in the policy were agreed to
by the insured, and that it was accept
ed subject to them ana all other pro-
visions Endorsed therein, and no of
ficer, agent or other representative
of the company, except the general
manager of the company in Chicago,
could waive, change or modify the
conditions.
When suit was brought to recover
on the policy the company defended
on the ground of forfeiture through
violation OF these conditions. The In
sured claimed the agent waived the
conditions. The judge took the case
from the jury. This the supreme
court reverses, and declares that the
ase should have gone to the jury, to
determine if the agent had made
waivers, as claimed, constituting Sec
ton 1850 of the code to give the agent
power to waive conditions in the
written contract TO the contrary.
Section 1850 provides in part as
follows:
"Any officer, agent or other repre-
sentative of an insurance company
doing business in this state who may
solicit insurance, procure applications,
issue policies, adjust losses or trans
act the business generally of such
companies shall be held to be the
agent of such company with authority
to transact all business within the
scope of his employment, anything in
the application, policy. contract, by
laws or articles OF Incorporation to
eff this statute was intenaed to and
does inhibit any limitations or restric-
lions upon the authority of an agent
having the powers enumerated there
in to transact all business within the
apparent scope or usual extent of his
employment, the local agent, Brown,
could waive the conditions Of the
policy and consent to the encum-
brance upon the property" says the
court in applying the section to the
case under consideration.
I'm Viele VS.. ms. Co., rs Iowa,
9, decided in 1868, this court neld that
a local recording agent having power
to issue and countersign policies
could waive the conditions in a policy
and the forfeitures arising therefrom
in the absence of limitations upon his
authority brought to the knowledge
of the assured and this has been the
rule recognized in this state as well
as other states since that uime."
the contrary Notwithstanding"