National Benefit Life and Property Assurance Co. v. McCoy

National Benefit Life and Property Assurance Co. v. McCoy

The majority held that the foreign insurer was bound by the acts of its British Columbia general agent: after the agent learned of the subsequent insurance he appointed an adjuster with authority to settle, accepted proofs and made a settlement offer; those acts constituted assent/waiver binding the company and estopped it from relying on the subsequent-insurance forfeiture; accordingly the appeal was dismissed and the insurer was liable for its ratable share of the loss as determined by the majority.

Citation
(1918) 57 SCR 29
Parties
Appellant / Defendant: National Benefit Life and Property Assurance Co.; Respondent / Plaintiff: Maud McCoy
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
10 June 1918
Procedural Posture
Insurance Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia; Final Judgment by Supreme Court
Outcome
Appeal dismissed with costs by the Supreme Court of Canada
Legal Topics
Subsequent Insurance, Assent to Co Insurance, Waiver of Forfeiture, Authority of General Agent, Liability for Acts of Agent, Apportionment of Co Insurance, Policy Conditions, Adjuster Authority
Source Language
English
Insurance Law Agency Law Contract Law Equity (estoppel/waiver) Subsequent Insurance Assent to Co Insurance Waiver of Forfeiture Authority of General Agent +4 more

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Parties

National Benefit Life and Property Assurance Co.

Appellant / Defendant

Maud McCoy

Respondent / Plaintiff

Procedural Posture

Insurance Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia; Final Judgment by Supreme Court

Legal Issues

  1. 1 Whether a foreign insurer is bound by the acts of its provincial general agent after knowledge of subsequent insurance
  2. 2 Whether appointment of an adjuster and offers/negotiations by the agent/adjuster constituted assent or waiver of the insurer's right to deny liability for subsequent insurance
  3. 3 Whether assent given after loss can bind the company

Ratio Decidendi

The majority held that the foreign insurer was bound by the acts of its British Columbia general agent: after the agent learned of the subsequent insurance he appointed an adjuster with authority to settle, accepted proofs and made a settlement offer; those acts constituted assent/waiver binding the company and estopped it from relying on the subsequent-insurance forfeiture; accordingly the appeal was dismissed and the insurer was liable for its ratable share of the loss as determined by the majority.

Court Disposition

Appeal dismissed with costs by the Supreme Court of Canada

Orders

  • Appeal dismissed with costs
  • Judgment for respondent for insurer's proportionate share; amount affirmed by majority: $1,309.10