35 Ind. App. 1 | Ind. Ct. App. | 1905
This was an action instituted in the DeKalb Circuit Court on the 29th day of July, 1902, to coerce payment of $400 on account of a policy of fire insurance issued by appellant to appellee on a certain dwelling-house situated on certain real estate in DeKalb county, Indiana, appellee owning only a life estate therein. The dwelling was totally destroyed by fire March 22, 1902.
The complaint was in three paragraphs. The first paragraph was dismissed. Briefly stated, the second paragraph avers that appellant is a corporation duly organized under the laws of the State of Indiana, with its principal office in DeKalb county, Indiana; that on April 3, 1880, appellee was the owner of sixty acres of real estate in said county, with a dwelling-house thereon occupied by her as a dwelling; that on said date appellant, under the name of the Earmers Mutual Eire Insurance Company of DeKalb County, Indiana, insured the appellee against loss or damage by fire or lightning to the following property, to wit: Dwelling on said land, $600; and specifically naming certain amounts of insurance on other specified property; that appellee paid a fee of $1 and a per cent, of $2, and received from appellant a policy — No. 192 — signed by its president and secretary; that, by the terms of the policy and articles of association of appellant, appellee, by due observance of the by-laws, became a continuing member of said corporation; that on August 10, 1899, appellee sold said land to one Cyrus B. Jackman for the nominal sum of $2,000, and the further consideration reserved to appellee and her hu&band of a life estate in said lands, with the exclusive possession of same and buildings thereon, and the profits thereof; that upon the sale of said land she immediately informed the secretary of appellant that she had sold the land and under what terms, and conditions, and sought his advice as to the necessity of having the policy assigned to her grantee; that she desired to. make any necessary change in the policy to keep it in “full force and validity;” that said
A copy of policy No. 192 is made an exhibit with this paragraph, and a copy of policy No. 1,496 is also made an exhibit. That part of the policy upon which this action is based,-necessary for the decision of this case, is as follows: “By this policy of insurance be it known that Sarah Jade-man, resident of DeKalb county, State of Indiana, has this -- day of continued membership become a member of the Farmers Mutual Eire Insurance Company of DeKalb County, according to the rules and regulations and articles of association; and is insured in said company against loss or damage from fire or lightning on the following described property, situated in Franklin township. Dwelling-house No.* 1, addition A [particularly describing the material in the foundation, building, roof, size of building, height, year built, etc.], $400.” Other classes of property with insurance thereon are mentioned and described in the policy. On the back of the policy is found the following: “Articles of association and rules and regulations of the Farmers Mutual Fire Insurance Company of DeKalb County, Indiana. We, the farmers and citizens of DeKalb county, State of Indiana, feeling the need of a reliable home insurance association and believing that such an association may be formed among the farmers and citizens of said State and county with a less rate of insurance than they are now having, and whereas, we believe a mutual association is the true method for farmers and citizens to adopt in insurance; therefore, we, the undersigned citizens
Next follow sections providing the duties of the various officers, the manner of electing directors, the terms of directors and duties of agents, etc. Section nineteen provides that “No other form of application shall be used but the ones prescribed by the board, said application form shall set forth by schedule the property to be insured, its construction, size, year built, location, amount of insurance^ and its present cash value,- together with the articles, rules and regulations of said association. Said application shall make part of the
Section twenty-eight provides that “Any person before becoming a member of the association shall pay to the soliciting agent $1 policy fee, together with ten cents on each $100 insured. He must also subscribe his name to a copy of the articles of this association, and comply with and observe the by-laws, rules and regulations of this association. Mo other form of application shall be used but the one prescribed by the board. It shall set forth, by schedule, the property to be insured, its locality, and postoffice of owner, and shall contain the rules and regulations of the association. It shall make part of the contract of the insurance and be considered a warranty of the truth of all the facts stated therein. Provided, that any policy issued on such application to any person or persons, who do not own the same in fee simple shall be null and void. And this association shall not be held responsible for any loss or damage thereto.”
Section thirty-seven provides that “The insurance of any member shall cease on the sale of his or her property, but he or she shall be holden for all assessments until his or her policy is legally withdrawn.”
Section forty-sis is as follows: “These articles of association, rules and regulations may be amended at any annual meeting by two-thirds vote of the members present; provided a written copy of such proposed changes shall have been presented at a previous meeting or submitted to the board at least thirty days before such meeting. Whenever any amendment is made in accordance with this section it shall affect every policy in force. A copy of which shall be recorded in the office of the recorder of DeKalb county, State of Indiana, subject to the Constitution and laws of this State.”
Appellant was originally organized March 18, 1878. The above form of policy and rules and regulations appear
The third paragraph of complaint is substantially the same as the second paragraph, except that it avers a gift of the real estate by appellee to Cyrus B. Jackman, with the reservation of a life estate, use and occupation of the premises; that the company made the readjustment of the insurance at its own instance, and for its own benefit and advantage; that appellee never made but one application to the company for insurance; that she has been a continuing member since the 3d day of April, 1880; that she never at any time had'any notice of invalidity of her policy, or that it was rescinded by the company nor did the company ever repay to her any money on account of its assessments, but treated said policy as a binding and valid contract of indemnity and obligation on its part, and levied and received assessments up to the date of said loss. Appellant filed separate demurrers to each of said paragraphs of complaint, which were overruled, and exceptions properly taken. The appellant answered the appellee’s complaint in three paragraphs. The first, a general denial. A demurrer was sustained to the second, and overruled as to the third, and ■exceptions properly taken. By the second paragraph of answer, appellant filed as a part thereof a copy of the certificate and policy issued, and avers “that by section twenty-eight of said articles of association it is provided that any policy issued on such application to any person or persons who do not own the title in fee simple to the real estate on which the building insured is situated shall be null and void, and the association shall not be responsible for any loss or damage thereto; that at the date of said application, and long prior thereto, the plaintiff had ceased to be the owner
The answers of the jury to the interrogatories show that appellant issued to appellee a policy of insurance on April 3, 1880; that she was then the owner of the real estate on which the building covered by said policy stood; that on August 10, 1899, she conveyed the land to her grandson, and in writing reserved a life estate therein, and the exclusive use, possession and enjoyment of the land, including the dwelling-house thereon; that appellant on August 23, 1900, made a revaluation of the property, including the dwelling so insured; that one James Hodges, a director of appellant, and under instructions of appellant, at the home of appellee, made said revaluation, filled up the blank form of application for insurance, without instruction from appellee as to her title or mortgage indebtedness upon said land, and without reading the application to her, and by his direction appellee signed the application, under the belief that such application contained only statements as to the natural condition and age of the dwelling and other buildings on said real estate; that at the time of said revaluation, and for a long time thereafter, W. E. O. Erancis was the secretary of appellant; that before the issuing of the policy sued on, and after said revaluation, appellee, at the office of appellant’s secretary, informed said secretary as to the condition of her title and her interest in said real estate, and asked that the policy be issued so that it would be an indemnity against loss; that she was then informed by the secretary of appel
The first and second errors assigned in this court challenge the ruling of the lower court on the demurrer to- each paragraph of the complaint; the third error assigned questions the court’s ruling on the demurrer to' the second paragraph of answer; the fourth and fifth errors assigned, appellant admits, present no question for our decision; the sixth, that the court erred in overruling the motion for a new trial; and seventh, “the court erred in overruling defendant’s motion for judgment on the interrogatories addressed to the jury, and their answers thereto, notwithstanding the general verdict.” The evidence is not in the record.
But one question is involved by the motion for a new trial, based upon the giving and refusing to give certain instructions. The instructions about which appellant makes complaint are long, and can serve no good purpose by being
The first and controlling question in this case, as it seems to us, is, could the officers or agents of the appellant waive the provisions of sections twenty-eight and thirty-seven as to the character of the title held by the insured, and issue a valid and binding policy on property other than that held by the assured as a fee-simple owner ?
This court, in the case of the Indiana Bond Co. v. Ogle (1899), 22 Ind. App. 593, 72 Am. St. 326, said: “It is fundamental that a corporation can he created, and can exist, by virtue of statutory authority, and by that only. If a corporation organizes under a general act, and inserts in its articles of association regulations and provisions additional to those required by the creative statute, such additional regulations-and provisions are void. Nor is the corporation permitted to place any restrictions upon the manner of exercising its corporate duties other than the statute provides.” Therefore, whatever provisions were placed in its articles of incorporation, not required by the statute authorizing its creation to be so stated therein, are void, and will not and should not be treated as a part of its articles of incorporation, but as by-laws, except where such statute authorizes such company to make rules and regulations for the purpose of facilitating and conducting its business in an orderly and efficient manner, prescribing the duties of its officers, etc. 1 Thompson, Corporations, §216.
By an act of the legislature of this State in force September 19, 1881 (Acts 1881, p. 714, §4932 Burns 1901, §3774 B. S. 1881), “any number of persons, not less than ten, may form an incorporated company for the purpose of mutual insurance of the property of its members against loss by fire or damage by lightning; which property to- be insured shall embrace dwelling-houses * * * such property being
This court, in the case of Union Cent. Life Ins. Co. v. Whetzel (1902), 29 Ind. App. 658, in speaking of a policy containing a stipulation that, in default of the payment of premium notes before or at the time when they became due, the policy should be null and void without action on the part of the company, held that “The company, having accepted these overdue payments, can not now be heard to say that the agent granting the extensions had no authority to do so ;” that “The stipulation in the policy that none of its terms could be modified or changed except in a specified manner could itself be waived by the company either expressly, or by the conduct of the company. * * * Although a policy may provide that an agent shall have no power to waive a forfeiture, yet the company may estop itself, by its conduct, from denying the granting of such powers to him.” Citing authorities.
In the case of Marshall, etc., Ins. Co. v. Liggett (1897), 16 Ind. App. 598, this court quotes with approval from Insurance Co. v. Wolff (1877), 95 U. S. 326, 24 L. Ed. 387,
In Home Ins. Co. v. Gibson (1894), 72 Miss. 58, 17 South. 13, it was held that where an agent of an insurance company receives the premium and issues a policy on a building, knowing that the assured has only a leasehold interest in the land on which the building insured stands, it is sufficient to waive the stipulation in the policy to the effect that it shall be void if the interest of the assured be other than the sole, unconditional ownership, and that no representative of the company is authorized to waive conditions except in writing indorsed on or attached to the policy. In speaking of this stipulation, the court said: “This clause is a species of refinement by which the corporation withdraws within its invisible and intangible ideality when liability is sought to be imposed upon it, bound by the acts of no agent, officer, or other representative, but reaches forth therefrom with Briarean hands to receive the profits and avails of these same acts performed by these same ‘agents/ as against those with whom these same agents have dealt. The refinement is too subtle for the practical affairs of actual life, and we
Tbe fact that the complaint avers a readjustment of appellee’s insurance at her home hy. appellant, taken in connection with all the other averments of the complaint — and on this subject the jury found that the readjustment or revaluation of the property and application for insurance was there made and taken by one James Hodges, a director of appellant, and to- whom appellee, made no statement with reference to her tide in the land, in our opinion — is not such a fatal variance as will authorize this court to disturb the judgment of the court below.
Finding no- error in the record, judgment affirmed.