77 Iowa 155 | Iowa | 1889
,3. EinEinsuranee: asreement to rein-of fraudatute II. It was contended that the agreement to rein-sure the property was within the statute of frauds, and could not be established by parol. But this ... x position is not tenable. An agreement to x . a reinsure ls not an undertaking to answer for the debt or default of the first insurer, but is an original undertaking, entered into with him, to indemnify the owner of the insured property in case a loss occurs. It is in no sense a contract of guaranty or suretyship, but under it, as between the immediate parties, the reinsurer assumes the risk absolutely. He takes the place of the first insurer, assuming his liabilities, and is bound in any event to answer for the loss, either to him or to the owner of the property, and the statute of frauds has no application to a contract of that nature.
Affirmed.