Opinion ID: 146258
Heading Depth: 4
Heading Rank: 2

Heading: Conditions Precedent to the Exchange

Text: Kirsh next argues that even if Alter and Schreck wished to exchange their policies to term insurance, the Endorsement subjected their right to do so to several conditions. Kirsh, however, was not a party to the Endorsement, and thus has no standing to insist that the parties strictly comply with the terms. See Sterling Colo. Agency, Inc. v. Sterling Ins. Co., 266 F.2d 472, 474 (10th Cir. 1959) (explaining that an insurance agent “is not a third party beneficiary under the policy nor in direct privity through the insuring contract”). Because the Endorsement conditions benefitted American General as the insurer, it was at liberty to waive them. See Stonewall Ins. Co. v. Modern Exploration, Inc., 757 S.W.2d 432, 435 (Tex. App.—Dallas 1998, no writ). American General allowed Alter and Schreck to exercise the Endorsement; thus the exchange took place “pursuant to the Endorsement,” which in turn gave rise to Kirsh’s repayment obligation under the CPTI Agreement.