18 Iowa 319 | Iowa | 1865
The 9th section of the articles of incorporation declares: “That when any property insured by said corporation shall be alienated by sale or otherwise, the policy of said insurance may be surrendered to the directors of said company to be canceled ; and upon such surrender, the assured shall be entitled to receive his
Appellant’s argument is devoted mainly to the question of the assignability of this policy — a question which, it seems to us, if ruled in her favor, would leave the one made by the answer and demurrer still undecided. For, though. assignable, either equitably, as a chose in action, or at law, under the general provisions of the statute (Rev., § 1798), or by the terms of the policy, it would by no means follow that the demurrer should have been sustained. From the answer, it appears that, before the loss, the assured sold-the property covered by the insurance, without the knowledge of the company. The purchaser did not have the policy ratified and confirmed to her, in the method provided for in the conditions annexed to the policy, nor in other manner. And it is this transfer without knowledge — the absence of this ratification and contemplated action on
Plaintiff being bound, therefore, by the charter and regulations annexed to and forming a part of the policy, can she recover, being the owner of the property at the time of the loss, and the holder of the policy by assignment ? It seems to us most clearly not, under the facts stated in the answer.
The articles of incorporation now under consideration recognize the right of the company to determine who shall become members thereof, and clearly indicate that the assured cannot, at his option, transfer the, policy and property, and thereby transfer the liability of the company, to his assignee and alienee. A method is pointed out, by which the alienation may be ratified, and the purchaser entitled to all the rights and privileges and subject to the liabilities of the party originally assured. This is the method adopted by the company-for its own protection, and these provisions plaintiff could not disregard. By complying with them, she would have obtained a new and original promise from the company, and thereby secured a valid insurance. But the contract, in effect (one of indemnity with the oumer), was at an end when the property was sold, and could not be revived or become available to the alienee without ratification or confirmation, as contemplated by the charter. There is no pretense of waiver, or anything of that kind, on the part of the company; and we need not, therefore, consider the effect thereof. The demurrer admits the facts as stated in the answer; and as these facts would preclude a recovery, it was properly overruled.
Affirmed.