205 Pa. 378 | Pa. | 1903
Lead Opinion
Opinion by
In Sloat v. Royal Insurance Co., 49 Pa. 14, decided by this court in 1865, the definition of “ double insurance” is stated by Read, J., as follows : “ Double insurance takes place when the assured makes two or more insurances on the same subject, the same risk, and the same interest. If there be double insurance, either simultaneously or by successive policies, in which priority of insurance is not provided for, all are insurers, and liable pro rata. All the policies are considered as making but one policy, and, therefore, any one insurer who pays more than his proportion, may claim a contribution from others who are liable. Fire policies usually contain express and exact provisions on this subject.” It was there held, following the rule adopted in Howard Insurance Co. v. Scribner, 5 Hill, 298, that where one policy of insurance in a company covers the building of the party insured and a subsequent policy in another company covers the building, machinery, tools, etc., it was not a case of a double insurance. In that case there was a $2,000
The result reached by the trial judge in this case is sustained by the rule enunciated in all our decisions, and unless we overrule them, the judgment of the court below must be affirmed. This we have no intention of doing. For thirty-eight years the losses covered by insurance policies in this state have been adjusted in conformity with the doctrine of Sloat v. Insurance Company. The rule announced in that case is recognized and well understood as the law of the state by both the insurer and the policy holder, and to modify or
The contract of fire insurance is one of indemnity. The intention of Dr. Meigs was to indemnify himself against loss on his property to the full amount of both classes of policies. We must presume that the insurance company intended that he should have protection to that extent. He paid a premium that entitled him, in the event of a total loss, to the payment of the full sum named in the policies. Unless, therefore, there is something in the contract that would prevent, it should be construed so as to give effect to the intention of the parties. It is contended by the defendant company that the pro rata clause requires the two classes of policies in case of a partial loss to contribute ratably to the loss on the east wing and its contents. Clearly the application of that doctrine would not give full effect to both classes of policies and protection to the insured to the amount of the policies. It must be conceded that that rule has no application where there is a total loss of the whole property and, as we have seen, it has been so decided by the court. It, therefore, might be sufficient to say that the rule cannot have a dual application, that it must be applied alike in case of a total and a partial loss. In a case of partial loss, it is apparent that it would deny to the insured the full value of his policy. If a pro rata contribution is to be enforced here against class A policies on -the loss to the east wing and its contents, then the full amount of those policies will not hereafter be available in case of a loss on the main building and its contents. To the extent of the sum taken from class A policies and applied to the loss on the east wing audits contents, the protection of those policies is withdrawn from the main building. This interpretation of the contracts, evidenced by the two classes of policies, not only does manifest injustice to the plaintiff as regards his indemnity on the A policies, but also effects a result that deprives him of the full value of his B policies. These policies contract to pay him 160,000 in
It is contended by the defendants that unless both classes of policies contribute ratably to the loss on the east wing and its contents, the plaintiff will not be indemnified to the full extent of his loss on the contents of the wing; and that is urged in support of the defendants’ construction of the policy. But we do not regard the fact as sustaining the contention. If the B policies pay the entire loss on the east wing and its contents, the plaintiff gets the full value of his policy and that is all he has a right to demand. If that is not sufficient to meet his loss, the fault lies with him in not taking adequate insurance, and not with the interpretation which is here placed on his contracts.
We regard the question raised on this record as settled by the principles announced in the decisions of this court in which the reasons for the rule are fully given, and hence we need not prolong this opinion. In the view we take of the case, the admission of the parol testimony and the action of the court thereon become immaterial, and, hence, the assignments relating thereto need not be considered.
The judgment is affirmed.
Dissenting Opinion
dissenting.
Double insurance is, or ought to be, wherever there are two separate insurers liable for the same loss. The fact that one policy covers more property or wideiyrisks than the other does not prevent the insurance being double on subjects covered by both.
If there had been no class B in the present case and the wing had burned, class A would have been liable to the extent of its policies, but there being a class B both were liable for the same loss, and that is double insurance. If class B policies were not sufficient to cover the entire loss on the contents of the
There is no difficulty about the ratio. Class A covered risks on §190,000 and class B on §60,000, and that should be the ratio of their liabilities.
It is said that the insured’s right to cover additions to the building by the same policies in class A was a privilege. But that is not a correct statement. The rights of the parties were fixed by the first contract not by any intention or choice subsequently. To build the addition was a privilege but to have it covered by the policy when built was a right, and involved the reciprocal right of class B to hold class A for contribution on a loss covered by the policies of both.
This is not only clear on principle hut I have not seen in any case an adequate answer to it. It must be admitted frankly that there is some difficulty in the language of the authorities in this state. The cases whether decided rightly or wrongly are settled and I would adhere to them. But the principle of law was expressed in some of them much more broadly than the case called for, and I would narrow the expression to what was really necessary in each case. The rule laid down is not properly, logically or equitably applicable to a case like the present.