Godfrey v. Atlantic Horse Insurance, 169 N.C. 238 (1915)

Feb. 24, 1915 · Supreme Court of North Carolina

169 N.C. 238

SAMUEL GODFREY v. ATLANTIC HORSE INSURANCE COMPANY.

(Filed 24 February, 1915.)

Insurance, — Principal and Agent — General Agent — Waiver — Implied Authority.

A general agent of an insurance company impliedly has authority to waive a stipulation in a policy of insurance, in this case, on a horse, and his receipt of the premium on the policy with knowledge that the local agent had waived the stipulation would be a waiver by the general agent, and binding on the insurer.

Appeal by defendant from Carter, J., at November Term, 1914, of PASQUOTANK.

Action upon a contract of insurance upon a horse. Tbe defendant relied upon tbe breach of certain conditions in tbe policy as a defense, and tbe plaintiff contended that these conditions bad been waived by the defendant. Evidence was introduced supporting tbe contentions of tbe parties.

Tbe jury rendered tbe following verdict:

1. Did Mendenhall, general agent, authorize Winder, agent, to waive tbe provisions in tbe policy, as alleged? Answer: “Tes.”

2. Did Winder waive tbe provisions of said policy, as alleged? Answer: “Yes.”

3. If so, did tbe general agent receive tbe premiums with knowledge of .such waiver? Answer: “Yes.”

4. After tbe horse became unwell, did tbe plaintiff Godfrey act with due diligence? Answer: “Yes.”

5. What amount, if any, is tbe plaintiff entitled to recover of tbe defendant? Answer: “$75, with interest.”

Judgment was entered in favor of tbe plaintiff, and tbe defendant excepted and appealed.

Ward <& Thompson for plaintiff.

I. M. Meekims for defendant.

Per CuRiAM.

We are of opinion that tbe evidence introduced by tbe plaintiff to show authority in tbe local agent to waive tbe provisions in tbe policy was competent; but if not, tbe finding upon tbe third issue is conclusive against tbe defendant.

It is well settled that tbe general agent of an insurance company has authority to waive stipulations in a policy (Gwaltney v. Assurance Society, 132 N. C., 929; Hardy v. Ins. Co., 154 N. C., 438), and if, as found by tbe jury, tbe agent received tbe premiums from tbe plaintiff with knowledge that tbe local agent bad waived tbe stipulation, this would be a waiver by tbe general agent.

No error.