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' I ■:.» 1' A HANDY BOOK OM FIRE INSURANCE LAW (affectino THE COMPANY AND ITS CUSTOMER,) BEING THE FIBE SECTIONS 07 THE ONTARIO INSURANCE ACT; 1897, WITH THE ONTARIO DECISIONS SINCE 187(5, ^AND THE Bectstona of tbe Supreme Court of QLanaba^ COMP*IjfiB- BY RODERICK JAMES JVIACLENNAN, Of On(fooile Hall, Darristerat-Law. TORONTO : (JHE^ CARS WELL iCO., Limited, LAW PUBLISHERS,'^ 1897. HG-373 4-^Cz05 i-- • i- Entered according to Act of the Parliament of Canada, in the year one thousand eight hun.tred and ninety-seven, by The Cabsweli. CO., Limited, at the Department of Agriculture. R, T(»KONTO : FlUNTBD BY THE CAR8WELL CO., LIMITED, 22, 30 Adelaide St. East. PREFACE. Before the year 1874, the Statutes in force iu Ontario contained only a few stray provisions relating to fire insurance contracts, apart from the special Act regulating mutual companies. Since that year, however, a large amount of law affecting fire insurance generally has, in different years, been enacted by the Legislature of this Province. Nearly all of this law has been consolidated in the Ontario Insurance Act, which came into force on the 13th of April, 1897. This considerable mass of statute law, with the decisions of the Ontario Courts since 1876, all the fire insurance decisions of the Supreme Court of Canada, and the few cases before the House of Lords during the past twenty years, comprise the material which has been used in writing this handy book on fire insurance law in Ontario. The incorpo- rating, licensing and regulating of fire insurance com- panies are not within its scope ; it covers only the law affecting the business between the fire insuranc6 6377 VI PREFACE. company and the insuring public, and the questions which arise thereout, with a short summary of the origin of the business and its development in Ontario, and a brief reference to fire investigations. To the text is added an appendix containing the sections of the Insurance Act which relate to fire insurance. The book is placed before the public with the hope that it may prove of some use, not only to the legal profession and those engaged in the fire insur- ance business, but also to some of those who require to protect their own and the property of others from the devouring element. In addition to the usual alphabetical table of cases, a further table is added, in which the decisions are grouped under the different series of reports from which they are extracted. By this arrangement, a reference to the volume and page of the report suffices through the body of the work, the name and date of the case being readily ascertained from the tables pro- vided. The sections in the foot notes refer to the sections of the Insurance Act. Toronto, June, 1897. TABLE OF CONTENTS. Paok. Preface v Table of Cases, No. 1 ix Table of Cases, No. 2 xiv CHAPTER I. Introductory 1 CHAPTER II. The Subjkct-Mattrb 7 CHAPTER III. The Application !♦' CHAPTER IV, The Premium and Premium Note 28 CHAPTER V. The Contract 36 CHAPTER VI. Conditions of the Contract 48 CHAPTER VII. Changes Material to the Risk 59 CHAPTER VIII. Insurance in other Companies 68 Vlll CONTEMTS. Paoe. CHAPTER IX. The Insurance Aoent 75 CHAPTER X. Loss, Pboof and Payment 80 CHAPTER XI. SUBROO.VTION AND MORTOAQEB 95 CHAPTER XII. Legal Pbocbedinos 102 APPENDIX. Fire Sections or the Ontario Insorance Act, 1897 Ill Index 1H5 Insurance and Financial Advertisements 161 TABLE OF CASES (No. 1 ) VOL. P.^ 1 498 7 96 7 96 14 98 1891 485 1896 372 1 604 2 394 2 411 3 182 4 192 4 660 5 82 5 157 5 233 5 466 6 19 11 92 11 212 12 33 12 446 12 631 13 218 13 270 14 612 Appeal Cages (House of Lords.) PAUK. Pearson v. Commercial 8 Citizens v. Parsons 37, 52, r)3 Queen v. Parsons 37, r>2, rtd Sun Oflace V. Hart 4.'> Davies v. National 17 Hiddle v. National 82 Supreme Court Reports (Canada.) 42 78 48 76 14 76 Liverpool v. Wyld Hastings v. Shannon 2,'), 7">, Gore V. Samo 17, 25, 43, Billington v. Provincial 26, 69, 70, Clark v. Scottish 12, McQueen v. Phoenix 13, 64, 65, Mutual of Wellington v. Frey 49, 91. 102 Ottawa v. Sheridan 21, 56, 75, 76 Parsons v. Standard 71 London v. Wright 39 Summers v. Commercial 38, 75, 77 Howard v. Lancashire 12, Caldwell v. Stadacona 12, 13, 15, 57, 65, Sovereign v. Peters iiij, Western v. Douil 57, 58, 72, Hohbs V. Guardian 10 Confederation v. O'Donnell 55 Logan V. Commercial 56, 57, 83 Sovereign v. Moir 25, 61 46 86 64 76 TABLE OF CASES. Supreme Court Reports (C&na.da,)—ContinHnl. VOL. PAGE. PAGE. 15 69 City of London v. Smith 18, 42, 48, 50, 91 15 488 Allen v. Merchants Marine 102 16 715 Wyman v. Imperial 63 16 717 Confederation v. O'Donnell 40 17 333 Fitzrandolph v. Mutual Relief 24 18 697 Imperial V. Bull 99 18 707 iEtna v. Attorney-General of Ont 8 18 711 Royal v. Duffus 104 20 208 Guardian v. Connely 8, 18, 25, 77 21 288 North British v. McLellan 14, 24, 104, 106 21 371 Buck V. Knowlton 41 23 26 Nixon V. Queen 82 23 32 Salterio v. City of London 20, 62, 83, 65 23 155 Citizens v. Salterio 65 25 154 Dominion v. Bradt 37, 38, 44, 49, 105 25 177 North British v. Toiirville 27. 68, 86 25 691 Eastmure v. Canada 79 26 585 Torrop v. Imperial 66, 77 Appeal Reports, Ontario. 1 218 McCrae v. Waterloo 70 1 276 McArthur v. Smith 34 1 545 Samo v. Gore 22 2 373 Canada v. Northern 47 2 396 Shannon v. Gore 8, 69 3 151 Mechanics v. Gore 98 3 487 Worswick v. Canada 57, 62 4 84 Ulrich v. National 88 4 281 Johnston v. Western 91 4 330 Marrin v. Stadacona 46 4 391 Butler V. Standard 14,107 5 87 Ballagh v Royal 49, 64 5 190 Western v. Provincial 41 5 290 Sowden V. Standard 16, 79 5 596 Greet V. Citizens 23,100 TABLE OF CASES. XI V Appeal ReportB, Ontario— Continued. VOL. PAGE. PAGR. 5 605 May V. standard 48, 67 6 231 Gauthier v. Waterloo 70, 108 6 427 Robins V. Victoria 85 6 512 Lowson v. Canada 35, 71 8 876 Quinlan v. Union 16, 17, 25, 77, 79 8 644 Howes v. Dominion 15, 26, 98, 105 9 620 Victoria v. Thompson 30 12 279 McLaren v. Commercial 90 12 418 Peoria V. Canada 103 14 328 City of London v. Smith 18, 42, 48, 56, 91 14 582 Moore V. Citizens 24, 71 15 262 Mitchell V. City of London 12, 84 15 363 Reddick v. Saugeen 13, 18, 20, 21, 55, 76 15 . 421 Bull V. North British 04, 60. 84, 86, 99 18 847 Edmonds V. Hamilton 100 18 446 Peuchen V. City Mutual 66,108 19 94 Osier v. Muter 93 19 298 Vineberg V. Guardian 88 20 606 Ardill v. Citizens . . 63, 66, 89 20 605 Ardill v. ^tna 63. 6('>, 89 21 297 Wealleans v. Canada 96, 103 22 68 Barnes v. Dominion 37, 38, 41, 49, 105 22 864 Dunlop V. Usborne 43. 6t) 22 408 Eastmure v. Canada 79 23 224 Wanle/3 v. Lancashire 73 23 342 Tierman v. People's Life 35, 77 28 449 Prittie v. Connecticut <)J, 100, 103 28 524 McPhillips V. London 62 28 729 Johnston v. Dominion 9, 60, 10(5 Ontario Reports. 1 341 Gill V. Canada 13,21, 60 1 494 Omnium v. Canada 97 9 45 Parsons v. Queen 12 2 410 Frazer V. Gore 35, 77 Xll TABLE OF CASES. Ontario HeportB— Continued. VOL. PAfJE. PAGE. 2 481 Fire Ins. Ass'n v. Canada 54, 58 2 560 Duff V. Canada 30 3 115 Wilby V. Standard 20, oo 3 234 Klein v. Union 14.19, 22, 27, «0j 69, 99 4 293 Hughes V. London 88 6 223 Clark v. Union 40 6 392 Cameron v, Canada 54 6 635 Clark v. Union 45 9 120 Royal V. Byers 87 10 236 Gorinf,' v. London 17, 87 10 718 Harris V. Waterloo 87 12 682 National v. McLaren 96 12 706 Mitchell v. City of Toronto 12 13 132 Graham v. London 70 13 r,8l Hartney v. North British 85 14 358 Graham v. Ontario 21 14 487 Oarr v. Fire Assurance 8, 94 16 145 Stillman v. Agricultural 8, 14, 20, 56 17 95 St. Phillips v. Glasgow 53, 88 17 432 Corham V. Kingston 100 17 712 Brown V. MoRae 96 18 79 Mclntyre v. East Williams 70, 72, 74 18 234 Canadian v. British 44 18 355 Anderson v. Saugeen 84, 91, 98 19 245 Cockburn V. British 26, 71 19 494 Peck V. Agricultural 61, 77 21 312 Stott V. London 23 23 627 Re Union Assurance Co'y ..92,101 25 100 Barnes v. Dominion 37, 38, 44, 49, 105 25 330 McCausland V. Quebec 73 25 515 Findley v. Fire Insurance Co'y 18, 22, 53 26 520 London v. London 51 27 251 McKay V. Norwich 54,55,59,61, 63 TABLE OF CASES. Xlll VOL. PAGE. 12 357 13 459 14 280 1") 367 2t) 113 27 61 27 167 27 334 43 384 43 563 44 229 44 261 44 501 44 523 45 359 45 412 46 334 46 611 28 70 29 1 29 22 29 28 Practice Reports (Ontario.) PACK. Clarry v. British 106 At;/orney-General v. .^tna 89 Simpson v. Chase c(2 Ferguson v. Provincial , 27 Grant's Reports. Sands v. Standard 54, 64, 67 White V. Lancashire 79 Sands v. Standard 54, 64, 67 Compton V. Mercantile 20, 37 Upper Canada Queen's Bench Reports. Herbert v. Mercantile 22 Gouinlock v. Manufacturers 19 Grant v. Reliance 44 Kanady v. Gore (52 Mclntyre v. National 53 Sanvey v. Isolated Risk 71 Nicholson v. Phoenix 19 Campbell v. Victoria 22 Phillips V. Grand River 8, i'O, 43, lt4 Devlin v. Queen Jo, 55 Upper Canada Common Pleas Reports. Pettigrew v. Gra nd River 15 Law v. Hand in Hand 60 Parsons v. Victoria , . 71 Sly V. Ottawa 54 XIV TABLE OF CASES. TABLE OF CASES (No. 2 ) A. PAGE. iEtna V. Attorney-General of Ont., (1890) 18 S. C. R. 707 8 Allen V. Merchants, (1888) 15 S. C. R. 488 102 Anderson v. Sauj^een, (1889) 18 Ont. R. 355 84, 91, 98 Ardill V. Citizens, (1893) 20 A. R. G05 63, 06, 89 Ardill V. Mtna, (1893) 20 A. R. 605 63, 66, 89 Attorney-General v. ^tna, (1890) 13 P. R. 459 89 B. Ballagh v. Royal, (1880) 5 A. R. 87 49, 54 Barnes v. Dominion, (1894) 25 Ont. R. ICO ; 22 A. R. 68 37, 38, 44, 49, 105 Rillington v. Provincial, (1879) 3 S. C. R. 182 26, 69, 70, 76 Brown v. McRae, (1889) 17 Ont. R. 712 96 Buck V. Knowlton, (1892) 21 S. C. R. 371 41 Bull V. North British, (1888) 15 A. R. 421 64, 66, 84, 86, 99 Butler V. Standard, (1879) 4 A. R. 391 14, 107 Caldwell v. Stadacona, (1883) 11 S. C. R. 212. . 12, 13, 15, 57, 65, 86 Canoeron v. Canada, (1884) 6 Ont. R. 392 54 TABLE OF CASES. XV PAGE. Campbell v. Victoria, (1880) 45 U. C. Q. B. 412 22 Canada v. Northern, (1878) 2 A. R. 373 47 Canadian v. British, (1889) 18 Ont. R. 234 44 Carr v. Fire Assurance Association, (1887) 14 Ont. R. 487. .8, 94 Citizens v. Parsons, (1881) 7 App. Gas. 96 37, 52, 53 Citizens v. Salterio, (1894) 23 S. C. R. 155 05 City of London v. Smith, (1887) 14 A.R. 328, (1888) 15 S. C. R. 69 18, 42, 48, 56, 91 Clark V. Scottish, (1879) 4 S. C. R. 192 12, 14 Clark V. Union, (1883) 6 Ont. R. 635 45 Clark V. Union, (1884) 6 Ont. R. 223 40 Clarry v. British, (1887) 12 P. R. 357 106 Cockburn v. British, (1890) 19 Ont. R. 245 26, 71 Compton V. Mercantile, (1880) 27 Grant, 334 20, 37 Confederation v. O'Donnell, (1886) 13 S. G. R. 218, (1889) 16 S. C. R. 717 -lO, 55 Corham v. Kingston, (1889) 17 Ont. R. 432 100 D. Davies V. National, (1891) App. Gas. 485 17 Devlin v. Queen, (1882) 46 U. G. Q. B. 611 10, 55 Dominion v. Bradt, (1895) 25 S. G. R. 154 37, 38, 44, 49, 105 Duff V. Canada, (1883) 2 Ont. U. 5()() 30 Dunlop V. Usborne, (1895) 22 A. R. 364 43, 66 m £. Eastmure v. Canada, (1896) 22 A. R. 408, 25 S. G. R. 691 .... 79 Edmonds V. Hamilton, (1891) 18 A. R. 347 100 F. Fergusonv. Provincial, (1893) 15 P. R. 367 27 Findley v. Fire Ins. Coy, (1894) 25 Out. R. 515 18, 22, 53 I?'" XVI TABLR OF CASES. i I i ; i : ! I PAGE. Fire Ins. Asa'n V. Canada, (1883) 2 Ont. R. 481 54, 58 Fitzrandolph v. Mutual Relief, (1890) 17 S. C. R. 333. 24 Frazer v. Gore, (1882) 2 Ont. R. 416 35, 77 G. Gauthier v. Waterloo, (1881) 6 A. R. 231 73, 108 Gill V. Canada, (1882) 1 Ont. R. 341 13, 21, 60 Gore V. Samo, (1878) 2 S. C. R. 411 17,25,43, 48 Goring V. London, (1885) 10 Ont. R. 236 17, 87 Gouinlock v. Manufacturers, (1878) 43 U. C. Q. B. 563 19 Graham v. London, (1886) 13 Ont. R. 132 70 Graham v. Ontario, (1887) 14 Ont. R. 358 21 Grant v. Reliance, (1879) 44 U. C. Q. B. 229 44 Greet v. Citizens, (1880) 5 A. R. 596 22, 100 Guardian v. Connely, (1891) 20 S. C. R. 208 8, 18, 25, 77 H. Harris v. Waterloo, (1886) 10 Ont. R. 718 87 Hartney v. North British, (1887) 13 Ont. R. 581 85 Hastings v. Shannon, (1878) 2 S. C. R. 394 25, 75, 78 Herbert v. Mercantile, (1878) 43 U. C. Q. B. 384 22 Hiddle v. National, (1896) App. Cas. 372 82 Hobbs V. Guardian, (1886) 12 8. C. R. 631 10 Howard v. Lancashire, (1885) 11 S. C. R. 92 12, 46 Howes V. Dominion, (1883) 8 A. R. 644 15, 26, 98, 105 Hughes V. London, (1883) 4 Ont. R. 293 88 I. Imperial v. Bull, (1889) 18 8. C. R. 697 99 TABLE OF CASES. XVll AGE. 58 24 77 108 60 48 87 19 70 31 44 100 77 87 85 78 22 82 10 46 105 88 99 J. PA«K. Johnston v. Dominion, (1890) 23 A. R. 729 9, 60, 106 Johnston v. Western, (1879) 1 A. R. ;i81 91 K. Kanady v. Gore, (1879) 41 U. C. Q. B. 2(U 62 Klein v. Union, (1883) 3 Ont. R. 234 . . . . li, 19, 22, 27, 60, 69, 99 L. Law V. Hand in Hand, (1878) 29 U. C. C. P. 1. 60 Liverpool v. Wyld, (1877) 1 S. C. R. 604 12 Logan V. Commercial, (1886) 13 S. C. R. 270 ."56, 57, 83 London v. London, (1895) 26 Ont. R. 520 51 London v. Wright, (1881) 5 S. C. R. 466 39 Lowson V. Canada, (1881) 6 A. B. 512 35, 71 M. Marrin v. Stadacona, (1879) 4 A. R. 330 46 May V. Standard, (1880) 5 A. R. 605 48, 67 Mechanics v. Gore, (1878) 3 A. R. 151 y8 Mitchell V. City of London, (1886) 12 Ont. R. 706, (1888) 15 A. R. 262 12, 84 Moore V. Citizens, (1888) 14 A. R. 582 24, 71 Mutual of Wellington v. Frey, (1880) 5 S. C. R. 82 ....49, 91, 102 Mc. McArthur v. Smith, (1877) 1 A. R. 276 34 McCauslandv. Quebec, (1894) 25 Ont. R. 330 73 b XVlll TABLE OF CASES. PAGE. McCrae v. Waterloo, (1877) 1 A. R. 218 70 Mclntyre v. East Williams (1889) 18 Ont. R. 79 70, 72, 74 Mclntyre v. National. (1879) 44 U. C. Q. B. 501 53 McKay v. Norwich, (1895) 27 Ont. R. 251 54, 55, 59, 61, 63 McLaren v. Commercial, (1885) 12 A. It. 279 90 McFhillips V. London, (189f5) 23 A. R. 524 (12 McQueen v. Phcenix, (1880) 4 S. C. R. 6G0 13, 64, 65, 76 N. National v. McLaren, (1886) 12 Ont. R. 682 96 Nicholson v. Phcenix, (1880) 45 U. C. Q. B. 359 19 Nixon V. Queen, (1894) 23 S. C. R. 26 82 North British v. McLellan, (1892) 21 S. C. R. 288. . 14, 24, 104, 106 North British v. TourvUlo, (1895) 25 S. C. R. 177 27, 68, 86 O. Omnium v. Canada, (1882) 1 Ont. R. 494 97 Osier V. Muter, (1892) 19 A. R. 94 93 Ottawa V. Sheridan, (1^-80) 5 S. C. R. 157 21, 56, 75, 76 P. Parauns v. Queen, (1882) 2 Ont R. 45 12 Parsons v. Standard, (1880) 5 S. C. R. 233 71 Parsons v. Victoria, (1878) 29 U. C. C. P 22 71 Pearson v. Commercial, (1876) 1 App. Cas. 498 8 Peck V. Agricultural, (1890) 19 Ont. R, 494 61, 77 Peoria v. Canada, (1885) 12 A. R. 418 103 Pettigrew v. Grand River, (1877) 28 U. C. C. P. 70 15 Peuchen v. City Mutual, ( 1891) 18 A. R. 446 66, 108 Phillips V. Grand River, (1881) 46 U. C. Q. B. 334. . .8, 20, 43, 94 Prittie v. Connecticut, (1896) 23 A. R. 449 62, 100, 103 TABLK OF CASES. XIX PAGE. Queen v. Parsons, (1881) 7 App. Cas. 96 37, 52, 53 Quinlan v. Union, (1883) 8 A. R. 370 IG, 17, 25, 77, 79 B. Reddick v. Saugeen, (1888) 15 A. R. 3G3 ... .13, 18, 20, 21, 55, 76 Robins v. Victoria, (1881) 6 A. R. 427 85 Royal V. Byers, (1885) 9 Ont. R. 120 87 Royal V. Duffus, (1890) 18 S. C. R. 711 104 S. Salterio v. City of London, (1894) 23 S. C. R. 32. . . .20, 02, 63, 65 Samo V. Gore, (1877) 1 A. R. 545 22 Sands v. Standard, (1878) 26 Gr. 113, 27 Gr. 107 54, 64, 67 Sauvey v. Isolated Risk Co'y, (1879) 44 U. C. Q. B. 523 71 Shannon v. Gore, (1878) 2 A. R. 396 8, 69 Simpson v. Chase, (1891) 14 P. R. 280 92 Sly V. Ottawa, (1878) 29 U. C. C. P. 28 54 Sovereign v. Moir, (1887) 14 S. C. R. 612 25, 61 Sovereign v. Peters, (1885) 12 S. C. R. 33 56, 64 Sowden v. Standard, (1880) 5 A. R. 290 16, 79 Stillman v. Agricultural, (1888) 16 Ont. R. 145 8, 14, 20, 56 Stott V. London, (1891) 21 Ont. R. 312 23 St. Phillips V. Glasgow, (1889) 17 Ont, E. 95 53, 88 Summers v. Commercial, (1881) (> S. C. R. 19 38, 75, 77 Sun Office v. Hart, (1889) 14 App. Cas. 98 45 T. Tiernan V. People's Life, (1896) 23 A. R. 342 35, 77 Torrop v. Imperial, (1896) 26 S. C. R. 585 66, 77 ill i 1 XX TABLE OF CASES. U. PAGE. Ulrich V. National, (1879) 4 A. R. 84 88 Union Assurance Co'y, lie, (1893) 23 Ont. R. 627 92, 101 V. Victoria v. Thompson, (1884) 9 A. II 620 30 Vineberg v. Guardian, (1892) 19 A. K. 293 88 W. Wanless v. Lancashire, (1896) 23 A. R. 224 73 Wealleans V. Canada, (1894) 21 A. R. 297 96, 103 Western v. Doull, (1886) 12 S. C. R. 446 57, 58, 72, 76 Western V. Provincial, (1880) 6 A. R. 190 41 White V. Lancashire, (1879) 27 Grant 61 78 Wilby V. Standard, (1883) 3 Ont. R. 115 20, 55 Worswick V. Canada, (1878) 3 A. R. 487 57, 62 Wyman V. Imperial, (1888) 16 S. C. R. 715 63 i FlllE INSURANCE LAW IN ONTARIO. \U CHAPTER r. INTRODUCTORY. Insurance Defined. — Insurance aj;ainst fire is n contiacl of indemnity, bv which the Insurance Company, in consideration of a certain sum re- ceived by them, either in fjross once for all, or by annual or other payments, undertakes to indem- nify the assured against all loss or damage to his property by fire during a specified i)eriod, either by a money payment or by restoring or reinstating the property insured. In tin's contract the clumces of benefit are equal to the assured and to the company; the first actually pays, or agrees to pay, a, certain sum as called upon, and the latter un- dertakes to pay a larger sum if a fire should happen. The one renders his property secure; th(» m'l.f.i.l.— 1 ti. Hi it FIRE INSURANCE LAW IN ONTARIO. other receives money with the probability that it it is clear gain. The Insurance Company is also called the insurer, the assurer or the underwriter; while the person whose property is protected is known as the insured or the assured; these terms being used interchangeably. The instrument by which the contract is made is called a policy, the stipulated consideration the premium, and the risk is the danger or peril insured against.^ Essential Principles— The essential principle of fire insurance is the distribution of loss, and this is founded on the underlying principle of so distributing and choosing the risks that the total premiums received by the company will exceed, so far as human ex])eriehce can determine, the aggregate losses and expenses, and leave some- thing to put by. Orig^in of. — Modern fire insurance seems to have had its origin in London, England, about the beginning of the seventeenth century, but it was not until after the great tire in London, in 16G0, that the business took practical shape. The first regular olfice was opened in London in 1681. Otfices were opened in Scotland in 1720; in Ger- many in 1750; in the United States, at Philadel- phia, in 1752; in Canada in 1804; in France in 1810; and in Russia in 1826. Stock Companies- — The business of fire in- surance in Ontario is transacted by two sorts of 'Sec. 2, SB. 24, 27, 31. S2, Sf) (r). i! INTRODUCTORY. 8 companies. The liist is tlio stock or proprietary company, which collects iu cash the premiums which pay in advance for insuinnce during; a definite period. These iiremiums are rejjjulated in amount by the nature of the risk, and are meant to cover the company's working expenses; tlu? pro- bable losses, based on past experience; dividends or profits to the shareholders, whose money forms the capital; and the accumulation of a rest or con- tingent fund.2 Mutual Companies. — The other sort of company is the mutual, which consists simply of the persons insured, who constitute its members. The object is to collect in premiums just sutticient to pay the expenses of management, the losses from time to time, and to form a reserve fund. The company does not take a gross premium in cash, but takes instead a promissory note, called a pre- mium note or undertaking, for a limited amount; on this a first instalment is paid in cash, and fur- ther instalments as the comi)any requires the money. In a season of small losses the calls on the notes will be corresj)ondingly small, and increase as fires are more numerous. The mutual com- panies handle chiefiy farm risks in one county. Some few mutual companies, however, do busi- ness on both the cash plan and the premium note plan, and are called cash mutual companies; their operations generally extend over a much wider area than those of the imre mutual companies.^ 2 Sec. 2 (43). s Sec. 2 (12, 44). mm '! [ 4 FIRE INSURANCE LAW IN ONTARIO. Companies Operating in Ontario.- The busi- ness of fire insurance in Ontario is transacted 1»t ft' 111 companies; of tliese, 77 are mutual companies organized in the Trovince, and iU are standard or stoclv companies. The mutual companies liavi^ in force |13(),000,()00 of insurance, and the stock companies about |35(),()()0,00(); )f the 34 stock com- panies, 21 were organized in Britain, 7 in the United States, and G in Canada. The 21 British companies do business on a total subscribed capital of upwards of |180,000,000, of which only |i30,00(),000 has been paid up. The 7 American companies have a capital of |12, 750,000, all paid up; while the subscribed capital of the Canadian companies is 13,275,000, on whicl; 1 1,030,000 has been paid. Of the British companies doing business in Ontario, 1 1 have their head office in London, 3 in Liverpool, 3 in IMancliester, 2 in Edinburgh, 1 in Norwich, and 1 in Dublin. The oldest of these are: The Sun Insurance Ofiice, organized in 1710; The Union Assurance Company, in 1714; The Lon- don Assurance, in 1720; The Pho'nix of London in 17S2; and The Norwich Union, in 1704. The Bho'nix was the first to commence business in Canada, namely, in 1, when divers loyal subjects of William IV. presented by petition the great advaivlages which w3 A. R. 721). " Sec8. IfiG, IGH (11). »♦ Sec. 108 (11). MP 10 FrilK INSURANCE LAW IN ONTARIO. f - ill ll l| ' the fire, as both followed from the fire on the match, and the condition does not relieve the com- pany from loss by explosion caused by fire." Fire by Design, Riot, etc.— A company, how- ever, is not liable where the damage or loss hap- pens by design on the part of the assured, or by the invasion of an enemy, or by insurrection, riot, civil commotion, military or usurped power.^® Nor where the assured wilfully refrains from taking means within his power to prevent the destruction;" nnd after loss the assured must furnish a statutory declaration declaring that the fire was not caused through his wilful act or neglect, procurenumt, means or contrivance.^® Fire Process. — Nor is a company liable for loss or damage to goods destroyed or damaged while undergoing any i)rocess in or by which the application of fire heat is necessary. ^'"' Defective Chimneys— Nor where the insur- ance is ui)on buildings or their contents, for loss caused by the want of good and substantial brick or stone chinmeys; or by ashes or embers being de- posited with the knowledge and consent of the assured in wooden vessels; or by stoves or stove- pipes beinj; To the knowledge of the assured in an rnsf*.'; ' Liiilon, or improperly secured.^'^ 1^ ?!. >7 4C V 1C> ^. 6: (10, h). 3. 611. »8 Sec. 168 (13, c. 3). "» Sec. 168 (10, d). aoSec. 168(10, c). *l THK SUBJECT MATTER. 11 Carpenters' Risks.— In certain cases the com- pany is not liable, unless the assured has per- mission to use his premises in a way f?enerally considered extra hazardous. Thus a company is not liable for loss or damaj;e occurring to build- ings or their contents, while the buildings are be- ing repaired by carpenters, joiners, plasterers, or other workmen, and in consequence thereof, un- less permission to execute such repairs has been previously granted in writing, signed by a duly authorized agent of the company. But in dwelling houses fifteen days are allowed in each year for incidental repairs without such perraission.^^ When Petroleum, etc, is Stored. — A company is not liable for loss or damage occurring while petroleum, rock-earth or coal oil, camphene, gaso- liu'e, buiTiing fluid, benzine, naphtha, or any licpiid products thereof, or any of their constituent parts (refined coal oil for lighting purposes only, not exceeding five gallons in qurtntity, or lubricating oil, not being crude petroleum, nor oil of less specific gravity than required by law for illumin- ating purposes, not exceeding live gallons, ex- cepted), or more than twenty-four pound's weight of gunpowder, is or are stored or kept in the build- ing insured, or containing the ])roperty insured unless permission is given in writing by the com- pany.22 The words stored or kept, in this condi- tion, do not apply when some of the prohibited 8' Sec. 168 (10, e). -"-' Sec. 168 (10, /). !4- I 12 FIRE INSURANCE LAW IN ONTARIO. articles aro upon the insured premises for the pur- pose of constant use, there to the knowledge of the companj'.-^ Whether a company can limit the quantity of gunpowder to ten pounds, when the stfitutory condition allows twenty, is a variation which has been thought not just or reasonable."* Insurable Interest —A person seeking insur- ance must have an insurable interest. All that is re' 28 IT. C. C. P. 70, »« 8 A. R. 041. ^Ml S. C. R. 212. Hi 10 FIRE INSURANCE LAW IN ONTARIO. CHAPTI^llIl. THE APPLICATION. The Application. — The first step h'tuling to an insurance contract is the ap[)li('ation, hy the person desiring protection, to the company for a policy. This is ordinarily in writing on a form supplied by the company, containing a variety of questions, the answers to which will enable the company to judge in the first place whether they will accept the risk, and, if accepted, the premium to be charged. The application should be care- fully prepared and signed by the person seeking insurance, although in the severe competition which exists in seeking insurance business, the application is frequently dispensed with, or the information is obtained and inserted by the agent or canvasser, and the api)lication form is not signed at all. It is not a wise thing, however, for those requiring insurance to accept this seeming courtesy on the part of insurance agents.^ It has been held reasonable, however, for a company to provide that when the company's agent fills up the application he shall be deemed the agent of the applicant and not of the company.- ' 8 A. R. 37G. -• 5 A. R. 290. TITF, APPLICATION. 17 Misrepresentation.— riic loji^islatiiic lias soon fit to rcj^iilaio the inforniatioii wliicli insurance coinpanics may I'lMiuirc, by enact in«; tliat no con- tract of insurance sluill be avoided by reason of llie inaccuracy of any HVatein<'nt in tlie aj>plica- tion, or inducinj? the company to enlei- into tlie contract, unless such statement is material to the contract,-' and as a further check have provided that the question of materiality shall be a cpies- tion of fact for the jnry, or for the Court, if then; be no jurv.^ Onus — ^lieii payment of a risk is resisted by the company on the j^ronnd of misrepresenta- tion, the onus is on them to prove very clearly thar such misrepresentation has been made.^ Information from the Assured.— It has been said, that there is no more reasonable or neces- sary requirement than that when one party is induced to enter into a contract with another, the latter is required to give bona fide and intelligible information in regard to material matters of which the other is ignorant, and in no case is the rule more necessary than in applications for in- surance." The assured must answer truthfully all (piestions giving information material to the risk." Good faith is of the essence of the contract 3 Sec. 144 (2). •' 1891, App. Cas. 485. * Sec. 144 (3) ; 10 Ont. R. '2;ir). " 2 S. C. R. 411. 8 A. R. 376. 'f i, ■k I ly m'l.f.il.— 2 18 FIRE INSURANCE LAW IN ONTARIO. of iiisurauce to ii greater extent tliaii in most other contracts.** Physical and Moral Risk.- The qnestions which are asked and tlie answers to be given may be divided into two classes: (1) those which relate to the physical risk, or describe the goods or build- ings to be insured, and (2) those relating to the moral risk, such as questions of title, value, in ceudiary danger, previous fires, etc." If Description Wrong.- If a person insures his building, or goods, and causes the same to be described otherwise than as thev reallv are, to the prejudice of the company, such insurance shall be of no force in respect to vlie property in regard to which the misrepresentation is made.^" An application for insurance on a frame house had "boards" written " burds,'' but the diagram on the back was in black, indicating frame (brick would have been in red). The company read ''burds" as brick, and without carefully noting the diagram, issued a policy as on a brick house, so describing it. The company having resisted payment of the policy after a loss, on the ground that the parties were never ad idem, it was held that as there had been no misrepresentation and no material mistake, the contract was complete and payment must be made.^^ « 20 S. C. R. 208. « 15 A. K. 3G3; 25 0nt. R. 51."). 1" Sec. IfiS (1). " 15 S. C. E. 61). THF, APri. RATION. 19 Material Matters.- If a iktsou insures lii.s buildiiij; or j^oods and niisrcpi'i'sents or omits to commnnicate any circumstance which is material to be made known to the company in ord(*r to enable it to judsje of the risk it undertakes, such insurance shall be of no force in respect to the property in regard to which the misrepresentation or omission is made.^- A jyrocer who insures his stock of jj^rocc^iea, and does not disclose the fact that he retails liquors, is not j^fuilty of a concealment material to the risk.^^ An answer, " dwellinj;, etc.," to the ques- tion " for what purpose used," has been held to mean dwelling? ct rchra, and wlien it appi^ared that the buildinjjf was also used as a saloon, and that the applicant and the agent had discussed this use, the Court considered that there was uo concealment which avoided the policy.^* Meaning of " Risk."— Tn the absence of any definition by the dealings of the parties, or by th<» scope of the interrogatories usually administered, the meaning of the word risk in condition num- ber 1, is the hazard incurred or the exposure to danger from the thing insured.^'' Question of Title — It is of vast importance to a company's determination, to reject or accept a proposed risk, to know whether the applicant be '•■^ Sec. ICH il). '•« l.T U. C. Q. 13. JjC)!}. " io U. C. Q. B. 859. '» o Ont. 11. 234. |i- If 20 FlUE INSURANCE LAW IN ONTARIO. the absolute owner, or a tenant for 8 or 5 or 50 years, whether the property be encumbered or mortgaged to 50 or 75 per cent, of its value, or beyond its value.^" It has accordingly been held that condition number 1 applies to mutters of title or encumbrances, to the moral as well as the physical risk, when the policy is based upon an application in which the assured is interrogated as to such matters ;^^ and when encumbranci.'s are asked for and are not disclosed, the policy will be avoided. ^^ The assured, after loss, must furnish a statutory declaration declaring all liens and encumbrances on the subject of the insurance.^" Policy Void. — In the following cases the in- suraiwe has been held to have had no force: Where the applicant [inswered that his mortgage was for |5,000, when in fact there were two mort- gages, on which was owing a total of $G,lt»0.2" Where the house insured sto«)d on blocks of wood and was held down by its own weight, and the applicant failed to disclose encumbrances against the land.2i Where a tenant of land, with the right to remove the buildings, asserted that he was the owuer.-- Policy Upheld — In the following instances the policy has been iipheld: Where the applicant '« abnt. 11. 115 ; '23 S. (3. R. :?2. -'" W Out. 11. 115. " 15 A. K. 303; but see contra, 1(5 Out. R. 145. »» 46 U. C. g. B. 334. •" H\ U. C. Q. B. 334. >» Sec. 1C8 (13, c. 5). •'•■' 27 Grant, 334. THE APPLICATION. 21 in answer to one question, stated that lie v»'as tlie owner in fee, and to anotli(u% that he had made a morts^St^ foi* |1,00(), it was held that he was not jfuilty of niisrei)i'esentation, althouji;li his answers were not strictly accurate.'-"* AVhere the assured said there was no encumbrance, havinj; been told by the company's ajjent that as (here was nothinijj owing on the existing mortgage it was not an encumbrjince, the company was held estopped from setting u]) the avoidance of the policy.-* And it is no misrepresentation for a person who has made a contract to sell his pi'Oi)erty, to de- scribe it as his, because he is still the legal owner.2^ A variation of condition number 1, which pro- vided that the ])olicy should be void if the ap- plication for insurance contained any false or in- correct statement respecting title or ownership, or the concealment of any mortgage, execution or encumbrance, was held not just or reasonable be- cause it was not limited to such facts as were material to be made known to the company.-'' \Yhen no inquiry is made by the comi)any, it is not necessarv for the assured to sjiv anything about his title, or the encumbrances upon the pro- perty. He must be interested in it, but is not bound to disclose the ])articular nature and modi- lications of his interest.*-^ The omission to disclose -'=' r. 8. c. R. l.-)7. •-' 1 i Out. u. ar.M. IT) A. n. :$('.:{. -'•' 1 Out. R. :ui. •-'" li. A, R. m'A. ,.,,,, 22 FIRE INSURANCE LAW IN ONTARIO. the existence of an encumbrance is not, apart from stipulation, and irrespective of its nature and amount, and without any imputation of fraud or concealment, a matter which will enable the com- pany to repudiate its liability, as being an omis- sion to conmiunicate a circumstance material to tlie risk. If the company deems it material to ascertain the extent of encumbrances upon the property, it is no injustice to put on it the onus of indicatinji: to the applicant that they do seek such information to i^uide them in their under- taking ; and the fact that a policy issues without application or answer, affords cogent evidence that information is waived as to the encum- brances, and that the company intends to insure regardless of the title.-*^ Incendiary Dan8:er. — When a company asks the question, is there any incendiary danger threatened or ajjprehended, and the applicant untruly answers no, he cannot recover -^ Thus a policy has been held void, when it ai peared that the api)licant, believing in danger, had sat up at night to watch his premises f^' as well as where an intemperate man had threatened to burn the appli<'anrs mill, and the latter had also received an anonymous letter threatening incendiarism.^^ ^^ a Ont. R. 2.S4. See also 1 A. B. 545. -'« 4:J U. C. Q. B. a81 ; 2") Ont. IJ. 'Ar>. an 45 U. C. Q. n. 412. =" 5 AH. ml ;i THE APPLICATION. 23 Previous Fires. — When a poison seeking in- surance answers no to a (luestion in the applica- tion, as to whether he has ever had an.v i)roperty destroyed by fire, although he has had fires on other properties having no connection with that in question, such incorrect answer will not avoid the insurance, because, as a matter of law, the question is immaterial to the risk. There are, however, cases where it may be important to a comjiany to be informed of fires by which the property of present applicants has been destroyed, in order to enable the company to judge of what is known among underwriters as the moral risk being incurred, by the acceptance of the proposal for insurance.3- Refused by Another Company.— It has been held nuiterial for the com]>jiny to know whether the risk olTered has <'ver been refused by an- other comi)any, or whether a policy in another company has been cancelled, with the reason, if any, and if such has hap]H'ned, ami the Jipplicant has answered in the negative, the polic^N uuiy be avoided.'**'* I Value of Properl.y — It is of importance to the comi)any to know the ]>rosont value of the ju'o- ]>orty to bo insured. Whore an assured repre- sented corlain ties ami lumber as of the cash value of |r),:U!), and later as worth f.',.^)!)!), and »-21 Out. 11. :U2. •'•' 21 Out. U. 312. 24 FlRE INSURANCE LAW IN ONTARIO. effected insurance to the amount of ^5,200, and it was shown that the property was onlj' !|4,0()0, and later |4,2()0 in value, it was held under r\w cir- cumstances, and in view of the nature of the goods, that the ove • luation was such as to ren- der the policy void/*^ Application, Part of Contract - Statutory con- dition number 1 prrtf'+"''; Tv makes tlie application l>art of the contract ».,k^! r.ed in the policy. In a Kew Hrunswick appi' i ■ . i^upreme Court were not of one mind on tl ^' cont; •- (Jp.ti between the application and ili'^ ]^»liiy. '* ^v , i.] i)y Ritchie, C.J., that if an application is not n aui- part of a j)olicy 1)3' insertion or reference, the statements in it are not warranties, but mere collateral repre- sentations, which will not avoid the policy unless the facts misstated are material to the risk; while Strong, J., said that if an application is properly connected with a i)olicy by verbal testimony, it forms part of the policy, and the statements in it are warranties.^^ On a Nova Scotia appeal in resjK'ct of a life policy, it was held that when a j)olicy insures in consideration of statements made in the application, and in a declaraticm an- nexed to the a])i>li<*ation, the assured agrees that the policy shall be void if the statements and an- swers to the questions in the a])plica(ion are un- true, the latter is a i»art of (he contract for in- surance and incorporated with the policy.'*** i 3^ 14 A. R. 582. «^ 21 S. C. H. 288. :Mt 17 H. C 1\. 33;?. I THK APPLICATION. 25 statements iition ai' or an- warran- Warranties.— swers contained ties, on the strength of which the risk is ac- cepted."*^ It is a first principle of the law of in- Manv of the I.' in the applic surance that in the case of a warranty the \\\m\!; mnst be exactly as it is represented to be;-^"* and if a warranty bv the assured is not complied with, it is a well-known principle of insurance that the company is relieved."^" But it is an effectual an- swer if the assured has been misled by the com- pany or their agents.'** Thus where an agent undertook to put in with the application a plan of the buildings, and neglected to do so, the com- pany was held liable ;^^ as it was where a can- vasser made a diagram of the buildings, which contained an error in distance, which was not cor- rected, although pointed out by the assured. ^^ When Agent Obtains Information — If a com- pany agrees that certain information when ob- tained by their agent shall not be disputed by them, this cures auv omission bv the assured in respect to the information which the agent as- sumes to obtain, even though the agent has made n mistake in what he has furnished. ^^ But if a person siM'king insurance signs an ai)plication in blank, leaving it to the canvasser [H ■'' 2S. C. K. in. •'« 2 s ('. R. n\n. «'•• 14 S. C. R. «)12. " 8 A. U. 370, *"2 S. C. R. ;J94. ^' 20 S. (!. R, 20R. *■■' 2 SC. R. ;M)1. m y^ .^ 26 FIKE INSURANCK LAW IN ONTARIO. m to obtain and fill in the required information, and the agent fails to do what he has promised, the company npon a loss happening may be relieved from liability.*^ Verbal notice to the agent of the comj>any is not sufficient when it should be in thi' written application/^ Endorsements — Endorsements on a form (►f application that it must be submitted to the com- pany before a receipt is issued, and that where steam is used to propel miachinery the risk must be approved by the head office before the company will be liable for any loss or damage, form no part of the application to be signed by the applicant, and are rather instructions to the agent than warn- ings to the ar^plicant, and if the ai)plirant's attev- tion is not drawn to them, and a receipt is issued, the company will be liable.^" Company's Own Enquiries. — A special survey or report obtained by a company through their own agent, after an application for insurance has been nnide, is not part of the applicjition, and can- not be referred to by the assured as showing that the company knew of a change in the risk, which they allege voids the policj.^' To show that a com])any does not consider cer- tain information material, a i>erson suing the com «3 S. C. U. 182 •">;j S. C. R 162. '" \\) Out. 1{. 245. ^"8 A R. (54 J. f. P (1 e (1 s II TH^] APPLICATION. 27 paiiy is entitled to liave the company produce for his inspection, applications received from other parties on which policies issued, and which issued notwithstanding circumstances which they say now should void the policy of the person suing.*'' When No Questions Asked. — The relation of the parties is entirely changed if the company asks no information, and the assured makes no repre- sentation; it must then be presumed that the com- pany has obtained all the information desired as to the property to be insured, or ventures to take the risk without it, and the assured being asked nothing has a right to presume that nothing on the risk is desired from him. If the person seek- ing insurance can be charged with negligence in rt^maining silent, the company is equally culpable in not asking for information, and in such a case neither can hold the other responsible for the con- sequences of a default or oversight in which both have participated.*" Fraud by Assignor —The assignee of an in- surance policy cannot recover on it, if fraud is established against his assignor."** ^« 15 P. R. •M>7. ^»a Out. R. 2;i4. '4 •'"•25 S. C. I?. 177. ill 28 FIUE INSURANCE LAW IN ONTARIO. H!!' I m I i; I «■ ^3; CHAPTHR IV. THE PREMIUM AND PREMIUM NOTE. Premium Defined - The premium is the eou- fiideration paid by the assured to the compan}' for protection during the period eovercd b3' the policy. On insurance issued by stock companies, the premium is paid in cash once for all, and is paid in advance when the contract is entered into.^ Premium Note — Mutual companies, however, are permitted by law to accept from the assured, instead of cash, a premium note or undertaking for a definite amount.- Amount of. — The board of directors of every provincial company may adopt a table of rates, premiums or premium notes, as the case may be, and varv such table from time to time.^ Minimum Rates — Tlie rate to be charged by mutual companies, by way of premium note, for insuring first-class isolated non-hazardous pro- jx'rty nnist be not less than $1 per ^100 per annum; and the minimum rate of insurance upon J Sec. 2 (27). - Sec. 2 (28), 127. ^ Sec. 99. THE PREMIUM AND PREMIUM NOTE. 29 other property must be inereaned relatively willi the increased risk, aceordinj? to the nature of such property'. I?ut premium notes of less than |1 per ^100 per annum may be charged as lonjx as the gross amount at risk exceeds |2,()()0,(MM), and the total assets of the company do not fall below two per rent, of the gross amount at risk; or so long as the company keeps on deposit with the IM'ovin- cial ''treasurer the full amount required by law.' Matters Affecting Premium Notes — As mu- tual companies practically do a credit business, the assured undertaking to pay his premium as and when called upon, many Cv,iisiderations arise which do not affect companies doing business ujk)!!- the cash system. Thus it must be settled for what purposes calls may be made, how and when they are to be made, the effect of non-payment, the company's right to sue for calls, and the time at which the assured's liability ceases and he be- comes entitled to have his note given back to him. All these have been covered by provisions in the Insurance Act. Assessments — In the first place premium notes are assessable by the company at such in- tervals and for such sums as may be necessary for losses, expenses and reserve, during the currency of the policies for which they are given."' « Sec. 128. Sees. Ill, 127, 130 30 FIHE insurance: law in ONTARIO. ii ! U For Losses. — In a ijisli nuitual (•ompjiiiy llio pi'cinimii nolcH arc liable for claims arising aj^ainsi the conipjiny generally," and all the ])ro- jierty and assets of the company, including such premium notes and undertakings, are liable for all losses which may arise under insurances for cash premiums."' A member is liable only for losses happening during the currency of his own policy, so that a new member cannot be assessed for losses which happened before he joined the company.^ Formerly a mutual compi;ny might divide its business into branches and departments,'" but this provision is not now in force. Under it the costs of a company's solicitors were charged against the branch for which the work was donte, and not against the assets generally.'' For Reserve. — A mutual company may levy an annual assessment not exceeding ten per cent, on the premium notes to form a reserve fund." Limit of Liability.— The liability of the maker of a premium note in respect to any loss or other claim or demand against the company, is always limited by the amount unpaid upon the note.^" 8 Sec. 108. "^ Sec. 140. " Sec. 130; 9 A. R. G20. '*R. S. O. (1887), c. 167, s. 24. « 2 Ont. R. .500. » Sees. Ill, 130. '"Sec. 109. THE PREMIUM AND PREMIUM NOTE. 31 Ftrsfe Paymeixt. — When the msurance is eflcL'ted, tlu' i-oinpaiiy may nMiuiro a first payint'iit ill cash on the premium note, which iinist not ex- ceed sixty per cent, of the amount of the note; or the first payment may be required in annual instal- ments, the first to be paid on the day on which the insurance issues, and the rest on the first day of each subsequent year.'^ A distinction beinj; thus drawn between a first payment, either in jifioss or in instalments, and assessments to be levied sub- sequently. Assessment on Different Notes —As 'jetweeu the various makers of premium notes, the assess- ments to be levied from each must be in propor- tion to the total amount of the notes. Hut if the premium note rate has been alten d, difiViential assessments must be made, so as to eav the assessment in defjittt, or any subsecpient Jisscss- /^ nu'ut. When he pays his assessment which was in default, the i)olicy becomes revived, unless the secretary of the company ^ives him nolice to the contmrv.-^ ft. When Note Void.- The premium note be- comes null and void on the expiration of forty romissory note made payable to the order of a mutual insurance c(>mi)any or its olticers in respect of a policy is negotiable.'-'" •-« 1 A. 1{. 270. "Sec. l:i7 ('2) "••iHec. HI. -'Scc!. 127 (2). -•'Sec. lau. THE PREMIUM AND PREMIUM NOTE. 85 Note Instead of Cash.— It has been said that there is nothing to prevent a proprietary company, if so disposed, from accepting notes for the pre- miums, or accepting an agreement to pay a stipu- hited sum in such calls or instalments as the directors may think proper to make.-^ Agent's Duty. —An agent instructed to re- ceive payment, cannot ^\ithout special authority accept anything but mone3\ The company will not be bound when the agent sets the premium off against a debt which the assured owes the agent ;-^ or where the agent gives a receipt for the pre- mium as payment for services alleged to have been rendered by the policj- holder to the company.-' Rebate. — When, before maturity, an insur- ance contract is terminated by either the assured or the company, tlu^ premium, as jM'ovided in con- dition number 10, must be apportioned, and the unearned portion refunded to the assured.-^" The Landlord and Tenant Act, which makes rents a])i)orlionable, enacts that such provision shall not render a|)portionable any annual suuis nuide ])ay- able in policies of assurance of any description."'^ -■ A. r?. .'■)12. ->" '2 Out. H. 41(;. '•'2:\ A K. a 12. *'Sec. 108 (1!)). " K. S. (). ]KS7, 0, 14.3, H. r>. ' >a r > 86 FIRE INSURANCE LAW IN ONTARIO. CHAPTER V THE CONTRACT. The Policy. — A contract of fire insurance? is evidenced b}' what is printed and written on an instrument calU'd a policy, and the consideration niovinj; from the assured to the company is called the premium/ and tlu? contract may be either sealed, written or oral.'- The Parties. — The parties to an insurance con- tract are, first, a company holding a license from the Province or from the Dominion, and rej^is- tered by the Province, and di'sij^nated the insurer;-" and secondly, any person or cor- ])orati()n havinji' an insurable intei'est in ]>ro- j)erty which may be the subjcH't of fire insurance, known as the assured. The Amount.— The amount of the contract to be undertaken by a jjrovincial company, may be determined by the board of directors of any such comi)any.^ ' Sec. 2 (21. 27). -Sec. 2 (23). -a Sees. r)3 to 59. 3 Sec. 99. , J' THIS CONTRACT. 37 The Interim Receipt. — An inlerini note or roart of the policy when issued, by followin<»- the directions of the statute, subject always to the condition that thev shall be held to b(» just and reasonable by the Court or Judj^e." A company's printed foi'm of ])olicy left out the statutory conditions, and inserted others which Avere void under the Act. The comi)any issued an interim r(»ceii>t, and a tire took place before a policy issued. It was held that the statutory conditions must be n'ad into the interim receipt, and also the company's variations so far as just and reasonable, because it must be ])rcsumed that in issuinjjf a ])olicy the variations would be \)vo- l)erly inserted by the company." When a provisi(nial tire insurance receipt ])ro- vides that the com])any may cancel the contract at any time within HO days, by iitailin^ the nssui'e() davs that the contract It • ^ 7 A pp. Cap. \)C,. " 7 A pp. {!as. %. " 7 A pp. Cas. U«. 37 App. Cas. ',16 ; 25 S. C. R. Uti ; 27 Grant, H;J4. 38 FIRE INSURANCE LAW IN ONTAUIO. V' of insurance sliall wholly cease and determine; these are Aariations of condition number 10, which require 5 days' notic(» if served personally, and 7 days' notice if sent throuj^h the post, and are not bindinjjj if not in a different coloured ink.'' An interim receipt must be signed bj* a duly authorized agent of the company. A local agent has no iK)wer to delegate his functions to a person employed to canvass for business, and the latter cannot sign interim receipts to bind tile company." Term of the Policy.— Contracts of fire insur- ance must not, as provided in the Insurance Act, exceed the term of three vears, and the insunnice of mercantile and manufacturing risks shall, if on the cash system, be for terms not exce( ding one year. But contracts of fire insurance bv anv mu- tual or cash mutual company may be for any term not exceeding four years. ^" The Dominion Act conflicts with this, as it provides that no tire policy shall be issued for or extend over a longer period than three years ;^^ and so to some extent does section 140 of the Ontario Insurance Act, Avhich says that any cash unit mil comi)any may ell'ect any insurance ujjou the cash ])remium jninciple for a period not exceeding three years on farm and other non-hazardous i)roperty, and for one year or less on any other class of ])roi)erty.^- »2r> B.C. W. Iu4. "6 8. C. R. 1!>. 1" Sec. 1()7. 1' 11. S. C. c. 121, a. 48 '•i Sec. IJO. TIIK CONTRACT. 39 Contracts Binding on Company.— Any policy, certificato, interim receipt or writing?, evidencing; the contract, if signed, conntersij'ned, issued, or delivered, is deemed to evidence a contract/"' And an insurance contract, within the scope of the In- surance Act, means and includes any contract or agreement, sealed, written or oral.^^ If Not Under Seal. — A company cannot, how- ever, resist payment on the ground that the policy has not the corporate seal affixed. Where an Act incorporating a company ])rovided that no con- tract should be valid unless nuide under the seal of the conii)any, and signed by the president, et<'., except the interim receipt, and the company resist- ed payment because the seal Avas not aftixed, it was held that the setting up the want of a si'al was a fraud, which a Court of Eiiuity would interfere to prevent.^ ^ If Not Countersigned. — The fact that a local agent has omitted to countersign the jjolicy will not reli<'ve the comijauy. Where a policy had on its margin ;i printed memoraudiim: "This policy is not valid unless counter- signed by agent at Countersigned this day of agent," and was delivered and the i)remium jtaid without this nu'morandum being signed, and the com|»any resisting payment on this ground, it was held that the necessity of J^ Sec. 143. 1^ Hec. 2 ('■i'^}- ^° 5 S. C. K. 40(). TT;r 10 FIRE INSURANCE LAAV IN ONTAHIO. iiii 'ili countorsij'irmj'- by the a^t'iit was not u condition l)recM'dent to the validity of tlie policy.^" Law to Govern. — When a company doinj;- luisi- ncHs in Ontario sij?ns and seals jxdicies in blank, and sends them to an ajj;ent in New York Slate to be issned as insnrances are ell'ected, Ihe contract in a policy issued in \ew York must be j^overncd by the law of Ontario and not by that of N«'W York State.'' When the subject matter of any insurance contract is jiroperty, or an insurable interest with- in the jurisdiction of Ontario, any policy, certi ficate, interim receipt, or writin«»- evidencinjj: the contract shall, if sij^ned, countersigned, issued, or delivered over in Ontario, or committed to the post office, or to any carrier, messen<»er, or aj»'ent, to be delivered or handed over to the assured, his assij»n, or ajjjout in Ontario, W deemed to evidence a contract made therein, and the contract shall be construed according;' to the law thereof.^*^ When Policy Not Delivered.— A policy though issued mav be rescinded anv time before it is de- livered to the assured. Where an ap])licati(m was sent by an apjent to the com])any, who issned a l)olicy and mailed it to the ajjent, and then tele- j-i'aphed the aj»-ent that they declined the risk, and instructed him to return the policy, which ho did, J«16S. C. R. 717. '" Out. R. 223. JsSec. 143. 'J UK CONTRACT. 11 tlio coiiipany were held not liablt' for a loss which had happened in the nicantinic, because it was said the property in tin? i)olicy never passed out of the company, and at most was no more than an escrow.^" W'liere a poli<-y contained a condition tliat the insurance shouhl not be consich'red binding" until the actual payment of the premium, it was liehl tliat tlie comijanv were not bound bv an admission in the j)olicy of the receipt of the premium, wliere the policy was I'ecalled before it was delivered bv the company's ajient to whom it had been sent.-'* Policy Deemed in Accord with Application- After application for insurance it must be dicm- ed that Jiny policy sent to the assured is intended to be in accordance with the terms of the applica- tion, unless the company points out in writin}^ the particulars wherein the policy diilers from the application.-^ A merchant ai)plied for insurance on his j»oods in a store, and next day i)aid the i)remium to the cremis( s, and said the rate would be increased. The mer- chant paid the additioniil ])remium, and the a^ent issued an interim receipt covering the jifoods in 1" 21 S. C. R. 371. -" 5 A. R. 190. -' Sec. 108 (2). j • ! 42 FIRK INSUHANCK LAW IN ONTAFUO. il both premises. The agent then notified liis com pany that doors had been cut into the next bnihl- ing, but did not communicate the notice in its entirety. The company forwarded a policy which covered the goods in the first store, with an N. 1). that an opening had been cut into tlie next premises. The merchant did not read liis policy, and a fire having taken place, the company refused to pay. The merchant took proceedings and obtained a decree reforming the policy, and de- claring that it embraced the goods in the added flats; this the Court of Appeal sustained; but on further appeal the Supreme Court was equally divided.22 An application for insurance on a frame house had " boards " written '" burds," but the diagram on the back was in black lines indicating frame (brick would have been indicated by red lines). The company read " burds " as " brick," and with- out carefully noting the diagram, issued a policy as on a brick house, so describing it. The company resisted payment after a loss on the ground that the parties were never ad idem, but it was held th.at as there had been no misrepresentation, and no mutual mistake, the contract was complete and payment must be made.^^ When Policy Divisible — A policy cannot be divided into a valid and an invalid part in the absence of a special condition permitting it. Thus 83 1 S. C. R. 60 J. -'1 15 ^. C. R. 69. THE CONTRACT. 43 wiiere a policy covered both building and con- tents, a definite amount on each, and a lunip sum premium ^^as charj^ed, and it appeared that tlu' polic}' was void f(U' failure 1o disclose encum- brances on the buildinj?, and for further encum- bering without consent, it was held that the policy could not be divided, and a loss havinj? taken place the insurance on the contents also failed. All that is done on one side is the consideration for all that is done on the other; all the promises are referred to all the considerations.-' The re- sult is ditferent, however, when a policy is subject to condition number 1, which provides that the omission to communicate a material circumstance renders the insurance of no effect in respect to the property in regard to which the omission is nuide; and an insurance covering a house and its Hcation was received, and where such notice is by letter, then seven days fi-om the arrival at any post office in Ontario shall be deemed good noti<-e. And the polic}- shall cease after such tender and notice aforesaid, and tlie expiration of the five or seven days as the case maj' be.^'' When an interim receipt provides that the con- tract shall cease if a policy is not sent within 50 davs, this is a variation of the statutorv condition and is inconsistent with it, and although inserted in the contract is not binding because it is not just and reasonable, because it is a negative mode of giving notice, while the Act recjuires written notice and a defined interval before the contract ceases.-' The notice terminating the insurance must be in writing, and must state that the policy will cease at the end of five days, as the case may be, with a tender of the unearned i)remium computed from the end of the five days. A notice that the policy is cancelled, and tendering the portion of the premium computed from the time the notice is delivered, is not sufticient, and does not termi- nate the insurance.28 *8 Sec. 108 (19). -8 18 Out. R. 'iM. ■^ 25 S. C. R. 154 ; 44 U. C. Q. B. 229. THE CONTRACT. 45 The company by force of this condition nmy terminate the policy at will. They may act upon their own jndj^ment, and are not reijiiired to allej^e or i)rove to the satisfaction of a Jiidjije or jury, that it is reasonable for them to terminate tlie policy.2" 1 ' Assured May Terminate Contract— The in- surance, if for a casli ])remium, may be termiujited by the assured, by ffivin}? written notice to tliat effect to the company or its authorized ajjfent, in which case the company may retain the customary short rate for the time the* insurance has been in force, and must re-pay to the assured the balance of Uie premium paid.^'' Any policy holder of a mutual company may, with the consent of the directors, withdraw from the company upon such terms as the directors may lawfully determine.*'*^ An attempt by one of two joint insurers to claim a rebate, which the company did not acknowledj^e, cannot be said to void tlie ]>olicy, a loss happeninj? before the company afjjreed to make lie re-payment.''^ 2 Tlie mere circumstance that the loss under a policy is payable to a third party, does not en- title the latter to treat the policy as absolutely his 30 14 p. Cas. 98. S( OS (19, a). =" Sec. 110. «•-' G Ont. R. G35. i: h I It, ill! ■m ; J I! '■I ' i i! 46 FinE INSURANCE LAW IN ONTARIO. own; consequently when the assured effects an in- surance with the loss payable to his creditor who holds the policy, the creditor cannot without the consent of the assured surrender the policy for cancella+"on.'^3 Renewing Policies. — Any contract tliat may be made for one year or any shorter period on the mutual system, or for three years or any shorter period on the cash system, may be renewed at the discretion of the company by renewal receipts in- stead of a policy, on the assured paying the re- (]uired premium, or giving a new premium note or undertaking, and any cash jKiynu-nts or premiuu) notes for renewal must be made at tlu' end of tlu? year or other i)eriod for which the policy was granted, otherwise the policy will be null and void.^* The renewing of an existing policy is merely a continuance of the original contract, and if an assured had no interest when the original policy was issued, but hns when it is renewed, still he cannot recover because of the absence of interest when the insurance was efTected.'^^ Re-insurance — Re-insurance by a provincial company may be effected with any oUier company registered to transact business in the Province, on ="4 A. K.330. \na Hec. 1C7 (2). ^•'11 S. C. R. 92. THE CONTRACT. 47 such conditions with respect to the payment of premiums as may be agreed upon between them."'" When one company re-insures with another, and the second company charges the same pre- mium as the first company states it is recoiviug from the owner, and the amount of the re-insur- ance premium is in fact k^ss than the owner is paying, this is not a misrepresentation which will avoid the re-insurance policy.^" SVher(? a comi»any lias ceased to tr msact busi- ness in Ontario, it must reinsure all its (uitstand- ing contracts, or obtain a discharge of them.'*'* '•>" Sec. 10-2. ='■ 1 A. II. 373. ^^ Sec. 51. ! i r' ■li r 48 FIRE IN8UBANCB LAW IN ONTARIO. CHAPTER VI. CONDITIONS OF THE CONTRACT. Conditions of Policy. — Experience lias shown insurance companies that certain precautions and guards are necessary for tlie prevention of fraud and consequent loss. The companies therefore guard against such by the terms provided in the application and policy.' Origin of Statutory Condition.s— Experience has also shown that insurance companies will sometimes elaborate the terms or conditions con- tained in their policies until they become unfair to the assured. In 1S74 the Ontaro Legislature considered it necessary to check the progress of fire insurance comiianies in this direction. In that year provision was made for the api»ointnu'Ut of a connnission of Judges to determine what condi- tions should be just and reasonable conditions to be inserted in fire insurance policies.- This ('(Mumission settled and si])])roved of 21 conditions, and these were adopted by the Legis- '2S. C. R. 411. -38 Vict. Out. c. 05, s. 2 ; T. A. H. <505; lo S. C. IJ. (1!). CONDITIONS OF TIIK CONTRACT. 40 lature in ISTO, and have been in forcf sinco the first (lay of July in tliat year. Tliey arc faniiiiarly known as the Ontario Statutory (.'onany, to be deemed part of every contract, whetlier scahMl, written or oral, entered into or in for^-e in Ontaiio with re- spect to any ]»roperty tlierein, or in tiansit tliere- from or thereto, and must be ininted on every l>olicy, with the heading;' "Statutory Conditions."' The conditions form ])art (►f a fire insui'ance con- tract, althouj»h not in the form of a policy, as when it consists of the abdication any the com pany, on the face oi' back of the ]>olicy, and unless so set out, no term of, or condition, stijiulation, warranty or proviso, modifying;" or impairiu^' tlie j'lVect of any such conlract made or reuewed, shall be jjood and valid or admissible in evidence •<:$!> Vict. c. 21; CO Vict. c. :U'., s. lOH. S. C. n. 154. "44 Vict., (1881) c. 20,8.28; for dcciHions before this Act hoc 5 S. C. R. 82 ; -) A. R. 87. m'l.f.i.l. — 4 'I \' Vi ,1 Ji ill t^^ 50 FIUE INSURANCE LAW IN ONTARIO. •i.\ I i to llie in't'judiec of the assui'ed or bonoficiary. This is iiot to impair the oll'cct of the statutory condi- tions or the sections of the Insurance -.\^t which rej'ulate them, and does not exclud*' tlie pro- posal or ai>plicatioii from being considered willi tlie contract, and tlie C'ourt must determine how far the company was induced to enter into tlie contract by any nuiterial misrepresentation con- tained in the ai)plication or proposal.** Other Conditions.— No contract of insurance can contain or have endorsed upon it, or be made subject to any term, condition, stipulation, war- ranty or proviso, providinjjf that such contract shall be avoided by reason of anv statement in the application therefor, or inducing? the enterinjjj into of the contract by the comjwmy, unless such term, condition, stipulation, warranty or proviso, is limited to cases in which such statement is material to the contract, and no contract shall be avoided bv reason of the inaccuracv of anv such statement unless it be nmterial to the contract. This is not to impair the ellect of the statutory conditions, or the sections of the Insurance Act which rcjiulate them." It has been held that if any troviso, is in.-.i'rted in any contract fjoverned by the pi'ovision just mention- ed, and the words " unless such term, etc., is limited to cases in which such statement is uui- » Sec. 144(1). » Sec. 114(2). CONDITIONS OF THE CONTRACT. 51 tciial ii> i\w contracl (' onilHcd, then all the provisions liavo no c tToct which hav( ' not such liniitntion, \vlielher they relat e to matei'ii il matters or not.^*^ To Vary Conditions. -If the company desires to vary the statutory conditions, or to omit any of them, or to add new conditions, tliere must be added on the instrument of contract containinjjf the printed statutory conditions words to the fol- h)winj? effect, i)rinted in cons]>icuous type, and in ink of ditt'erenl colour: " N'ariations in Conditions. This policy is issued on the at)ove statutory con- ditions, with the following; variations and addi- tions. These variations (or as the case may he) are by virtue of the Ontario statute in that behalf, in force so far as, by the Court or .Iud};(' before whom a question is tried relatinjjj thereto, they shall be held to be just and reasonable to be exacted by the com])any.""" No such variation, addition or omission, is lep:al or bindinj? on the assured, unless the same is distinctly indicated and set forth as above mentioned; and no (piestion may be consirinted its own conditions and has failed to jirint the statutory conditions, it is not the case that the ]>olicy must be deemed to be without conditions at all, it is subject to the statu- torv or.'es alone.^'' Aj<^ainst Company and Assured— Althoujjh the statute says that the conditions shall be deemed i)art of the contract as aj^ainst the insurers,^' it has been held that a policy is sub- ject to the statutory conditions, as aj^ainst both insurer and assured. ^^ il- Renewed Policy — The statutory conditions apply to all insurance policies in force in Ontario, and consequently rej^ulate a ])olicv etferesident tlx're, and count ersl«;ned by a local aj»('nt in Ontario, where the ]H'oj»erty insured is situate, is j»overned by the statutory conditions.-" "'7 A pp. Cas. <>0; 25 Out. U. .".IT) ; Soc. I 11. '"Rec. 108. i'»17 Out. U. •.»"). "* 7 App. Crts <)(;. -" 41 U. C. Q. B. 501. mmmsimm i 54 FIRE INSURANCE LAW IN ONTARIO. ^ 1 ij 1 ■ 1 ^ 1 '1 I I \ 1 :| 1 'ill 1 1 i Out of Ontario —lint when tlio property in- sured is not in Ontario, the st.'itutory conditions do not ai)])ly, and the contract is simply what the parties have entered into.^^ Re-insurance. — The Fire Insurance T*olicv Act does not apply to a contract or policy of re- insurance. The Act was introduced to remedy • the oppression and injustice exercised by insur- ance coni])anies towards the orij»inal assured, not to i)rotect the conn)anv in any contract they may make to coyer their own liability.^^ Variations Void.— The following- variations to the statutory conditions have been read out of the ])olicy: Where tliey were printed in type of the same size as the type of the statutory conditions, and in ink of a blue colour ditVerinj^f very little from the black colour of the statutory condi- tiinis;^''^ also where the variations were not i>ro- ])erly headed as riMjuired by the statute.-* Test of Reasonableness. — The reasonableness of }i variation to the statutory conditions, is to be tested with relation to the circumstances at the time the jjolicy is issued, and not in the lip;ht of those existinj»' at the time at which the condition is souj»ht to be a]>i>lied.-'' It has also been said '-'' C, Out. H. 392. -'^-iOnt. 11. 4H1. ■-•"20 Gr. li:i ; 27 Or. 1('.7. -"21) V. C. C. P. '28 -'■"27 Out. 11 '2.-.! ; 5 A. 1?. 87. OONDITIONS OF THE CONTRACT. 55 that variations making the policy more onerous than the statu! cry conditions wouhl have don<», are to be treated as prima fa<'ie unreasonabU', but this princiiile has not yet been clc'arly decid- ed.-" The question whether a variation is just and reasonabh' may be raised on appeal, altliou«i;li not raised at the trial.-^ Condition Divisible.— Tlie whole of an added condition will not fail, if one ])art is unreason- able and the other is ]u*o])er; the condilion is divisible, and eti'ect will be j^iven to the part which is just and reasonable.'-"* Implied Condition - It has been said Ihat every policy of insurance must be considered as carrying the j)rovision that the assured shall not, with tlie fraudulent intention of throwing Ihe loss on the com])any, wilfully cause or refrain frcnn taking means within his power to prevent the destruction. -'^ A memo, on a policy as to countersigning is not a condition of the ])olicy, and the assured is not barred by a non-compliance with its terms.-'" It has been said that it may ])erha]»s seem singular that so much ditticulty has arisen in con- struing the statutory conditions, when we reflect that they were franuHl bv a committee of the *"27 Ont. R. 251. -^•i Out. l\. IIH. ='" 1:5 B. C. li. '21 «. -•^ 15 A. R. :50:i -'"40 U. C. Q, B OH. !?^ I! 5G FIRE INSUBANCE LAW IN ONTARIO. learned Judges of Ontario, specially commissioned for the piirpose.^^ Object of Conditions— Conditions in policies iwc intended to ])revent injustice to eonipanies by false and fraudulent representations, but not to enable them to act dishonestly or fraudulently towards others, whose money they haye receiyed, and who are by the acts of their authorized af^ents lulled into security, to find subseijuently the com])any endeayour to r('])udiate the acts of those who are held out bv them, not as mere local but as general agents.'^- How Construed.— The conditions on a fire policy are to be construed strictly,^'"' and the C'oiirt will not search for a construction of lan- guage in an insurance ]>olicy which will yoid the jjolicy and ])roduce a forfeiture, when it will bear another reasonable construction which will not ]»r<»duce such a result."'^ When force and efl'ect can be giyen to the policy in favour of the assured, force and ett'ect will be given rather than it should lu'rish.*^"' It is a rule of construction firmly established, that while the sti])ulations of a contract of fire insurance arc to receive their full legal etlect in order to gujird the com]>iniy against fraud and imjjosture, it is to be liberally interju'cted in »' 15 B. C. K. {',[). 3-5 S.C. R. 157. -'■' in s. c. n. 270. '<^ 12 S. (;. 11. 38. ]<) Unt. R. 145. CONDITIONS OF THE CONTRACT. 57 favour of the assured so as not to destroy without l)hiin necessity his chiim to indemnity.-'" Waiver of Conditions.— The conditions on a policy must be complied with unless they have been waived by the company,"*' and they must be construed strictly.'*'* No condition, either in whole or in part, shall be deemed to have been waived by a company unless the waiver is clearly ex- pressed in writinji^, sijjned by an ajj;ent of the com- pany. 3i> And when the manner of waiver is thus clearly expressed, the conditions any may assent to any nasonable waiver of conditions made in good faith, so long as they do not increase the harden of the re-insurer.^"* Notice to Company.— Any written notice to a company for any purpose of the statutory condi- tions, where the mode thereof is not (»xi)i*essly l)rovided, may be by letter delivered at the head office of the company in Ontario, or by registered post letter, addressed to the company, its manager or agent, at such head office, or by such wiitten notice given in any other manner to an authorized agent of the company. ^^ •»' 12 S. r. R. 44(J. '•"2 Ont. I?. 481. ^' Sees. Tfj, 108 (2H). CHANGES MATERIAL TO THE RISK. 69 CHAPTER VII. CHANGES MATERIAL TO THE RISK. Change Material to the Risk— After a policy liMH . issued i\ny cliaiijio luaterial to the- risk, and within the control or knowl('djj:o of the assured, shall avoid the j>olicy as lo the part alfect- ed thereby, unless the chan«;(* is jiroinptly notified in vvritinji" to the company or its local aj'ent; and the company when so notitied may return the ]>remiuni for the unexpired period and cancel the policy, or may demand in writinjjf an additional premium, which the assured shall, if he desires the continuance of the jiolicy, forthwith \n\\ to the company, and if he nef»lects to make such pay- ment after receiving? such demand, the policy shall be no lonjyer in force. ^ But it is optional with the company to pay or allow claims which are void under this condition, in case the comi>any thinks lit, to waive anv breach of the condition.- Meaning of "Risk."— The meaninj:: of the woi'd risk in the third condition, is not distinj»uish- able from the same word in the first condition,'' ' Sec. U\H (3). -' Sec. 170. -•27 Ont. 1\. 251. imBii n GO riHE INSURANCE LAW IN ONTAIJIO. where it has beeu held to mean the hazard in- curred, or the exposure to danger from tlie thing insured.^ Meaning of "Change"— In the expression '' if the risk he increased or changed," change must l)e looked on as a synonvm of increase, and not a word )f different signification."' Company Estopped. — A comi)any will be estopped from allegi.ig a change material to tln^ risk, when wi.u knowledge of it they issue a renewal receij)!. and accept ])ayment of the pre- mium." Material Change Defined. - \Vhat oondi tion nurilx-r l\ ])()ints at is something ])ermanent and habitual, some structural change in the premises, or alteration in .e nature of the work or business carried on, Jind not a mere casual or t('m])orarv act. Hence the use bv a farmer of a steam engine on one occasion in connection with a machine for crushing grain, is not a change material to the risk within tlu' condition." A ] rovision in a ]K)licy permitting the assured to use. for the ]MiriM)se of threshing the cro]>s on the ]n*emises, a steam thresher with an etVicient S]>ark ai'rest, wlu'ii several of a row of small houses beeonie vacant to the assui'ed's kiio\vle(lj:;e, and remain so for several months. And in such a case the part attected is the whole block, and the jiolicy becomes wholly void if notice be not ^iveii."* A ((mdilion in a policy niakinj;" (he insurance void, in case the d,, ellin^" insured beconie vacant and I'emain so for ten davs, is not unreasonable.'"' More Hazardous Business -A change lo a more hazardous business is a clian<;(' material lo Ihe risk. Thus the manufacture of excelsior, made from wood cut by machinei'y into shreds, and used for ujjholsterinjjf, is a hazardous business.'^ If the assui'ed is forbidden, without the iter- mission of the company, from cariyinj;' on another business which is d<'nominat<'d hazard ous or extra hazardous, snid he do so wilh(»u( ])er- mission. Ihe coin}>any will 1 «' relieved. And it does not matter r<>])ei' but not a necessary ]>ar1y.''' Ibit ail assignm«'n1 of a ]»o!icy as collateral security avoids a jMilicy, which stijiulates against an assignuirnt in whole, or of any interest in it, inulei' penalty of foi'feiture."' The assignee of a policy who is not inteiested ill I lie pi-ojieity insured does not by such assign- ment, and the assent of the company thereto, become the s'ssiiK'd undei' the ]»olicy, and the policy still nniains liable to be defeated by a breach of the conditions by the assignor."' '•'3 A. K. 187. »i23 A. U. 524. 1 • 'iM A. 11. 44'.l. »7 44 U C. g. B. 2(11 I'jaS. C. K. 32. CHANGES MATEHIAL TO TIIK lilSK. 63 When Property Assigned but Policy Not.— Jlut wlit'i''.' a iM)li( V was ciulorsi'd lo.ss ]»avabl(' to tli(> luoitj^aj'tM', and the inorlj'a^cc ohlaincd an assijinnicnt io himself of llic (Mjuity of redemp- tion in llie jtropeity, but did not take an assi<;n- ment of the moi't};aj;or's interest in the iJoliey, and the company aece]>ted i)reminnis from the morlj;a^('e with Ivnowh-d^' that the mortj^ajior no lonjici- liad any interest, it was hehl that the company must he taker, as liavinj;" intended to deal witli the mortj^ajiee, that the contract was c(ro|i' riy insured is assigned, without a wi'itten permission endorsed on the |iolicy t»y an agent "^ 1») S. C. H. 71."). "'27 Out. K. 251. •-■"20 A. K. OO.'). 2' 23 B.C. 11. 32 II 1 1 1 ] J 64 FIIIE INSUUANCK LAW IN ONTARIO. of the compaiiy duly aullioriziMl lor such purpose, the policy llicirby licconics void; but this con- dition docs not apply to clianj-e of title by succcssicui, or by the operation of the law, or by i-eason of death.-- I!ut it is o])tional with the coin])any to pay or allow a claim wliich is void undei- (his condition, in case the conijumy thinks rit to waive any assignment made without per- mission. -•* The a!-sij»nmeni>lated by ihis condi- tion are Ihose in whi<-h the assij^nor divests him- self of all lille and inter(>st. 11 is not prohibitory of the assij^nment of an interest as security, by way of a chattel niorlji.aj'c or olherwise, when an interest slill remains in the assured. Thus an assiji^nuK'nt by an assured, of (he properly insured (o a trustee for the benefit of the assured's crcdKors, who are to be jtaid and the balance re- l>aid (o (he assuied, is not an assijiumcnt within the condKion. The condil;on is directed aj^ainst a chan};(' of tide, not the creation of an encum- brance.-' When the whole interest in the insured pro- jierly is assij»n(d, a case arises wherein iv is necessary (o oldain (he c(msent of (he company, the object beintj, as (he assi;;nor's in(erest in (he jtolicy will be (erminable by a sale and (rans- fer, U) enable the purchaser to p't the benetit of =»Sec. I(i8 (t). 2«Sec. 170. -*A S. C. R. Gi;0 ; 2() Grant, 113 ; 27 Grant, 107 ; l'> A. R, 421 ; 12 S, C, R. 3:^. CHANGES MATKRIAL TO THE RISK. 65 the nn('xi>ir('(l lerin, and in case of loss to recover llie insurance.-' In the absence of all conditions in a policy, clianji'es of title do not niallei* so lonj*' as the assui'eany is an assignment, which renders the -•' 4 S. C. R. 6(iO. -'- 2H S. C. n. l.ir,. •-"•23 S. C. R. 15;'. •-'' 11 8. C. II. 212. ->'2li S. C. R. 82. m'l.f.i.l. — 5 ' ( GO FIRE INSURANCE LAW IN ONTARIO. polic}' void under condition nnniblace of the old, an assii»n!iieat v.hich will void the jiolicy when the old building; is destroyed bv fire."'- ! Assignment of Part. — AVhen a policy in one Sinn covers bu*.ldinj»s and chattels, and the land is conveyed by deed without the consent of the? company, the policy is avoided in toto, and dees not remain in force as to the chiittels.''^ Where a. policy on a factoi'y and machinery contained a condilion, nialdnj» il void if (he i>roperly should be sold or conve,\< 1. or the interesl of the pjiiMies therein ( lunijicd without the consent of the c(un- ])any, it was held tluit a chattel niortjJiJifiC jiiveu by the assured on the machinerv voided the policy.'^ ^ ^ Variations of the Conditions- The following variation has been held not just or reasoiuible: — " ^Vhen ])roperjirt tliorcof sliall be alienated, or in case of any Iransfcr or cli.'injio of litle lo llio jjropcriy in- sured, or any ]»art tlieicof, or of any interest tlierein, Avithout the consent of the conipany tirst endorsed hereon, or if tiic property hereby in- sured shall be levicMl ujjon. or taken into ]>osses- sion or custody under any lej;al process, or the title be disj)uted in any luoceedinj;' at law or in e(|uity. this policy shall cease to be bindinj; upon the con)])any. "•*■"'' The reasonableness of the f(»llo\\injjf has been doubted: — "If the ])roi><'rty insured be levied u](on, or taken into ]M)ssession or custody \inder any lejial ])rocess, the policy shall cease to b<' binding."' It has been held that such a variation is not broken when a baililT makes a formal seizure of Ihe j^'oods insured, but does not deiuive the assured of their jjossession or custody, and ui)on a bond beinji" jiiven in a day or two withdraws tlu^ seizure."^'^ •'""JC. Grant, ll;{ ; 27 Grant, K'.?. 3«5 A. R. no."). : il 68 VUiV) INSUUANGK LAW IN ONTAUIO. CliAPTI]|| VIM. INSURANCE IN OTHER COMPANIES. 1^ Over Insurance.— Over insnrniKc must Ix? put a stop to, as iinicli as it is in the i)o\V('rs of the Courts to do it. Thorcin lies ouc of tlie j;reaU'st sources of fijuid in eonneetion witli the insurance business. If the assured is not in part a co-insurer with the company, that is to say, if the parties to the contract have not a common interest in the j)reservation of thi* property in- sured, one of the most etticient safejAimrds ajj^ainst fraud and crime is removed. Any con- tract where the assured may expect to make a l>rotit by the destruction of the property insured is in hiw tainted witli immorality.^ ■a m Prior Insurance.— The c()mpany is not liable for loss if there is any prior insurance in any other comi)any. unless the company's assent thereto is endorsed on the policy.- Wlu're a company is handed a policy about to ex])ire with instructions to renew it, and the ex- pirin}> policy has other insurance in other com- 1 25 S. C. R. p. 195. - Sec. 168 (8). INSURANCE IN OTHER COMPANIES. 69 panies assented lo on i1, the fOiuj)any issuing tlie new policy imisl 1ak<' notice of this, and if they fail to endorse such ]»rior insurance on the new policy, they cannot afterwards be allowed to say that the n<'\v policy is void because their assent to the ])rior insurance is not endoi'sed on the jK)licy, as it is the con)j)any's (►\vn nejilect."^ l>ut it was held that a coni]>any was relieved, where the company's a^cnt ijireed to obtain and insert in the application particulars of the previous insnrjinces and neglected so to do;^ and when an owner of a mill applies for insurance, and states that he has no other insurance on the property, although there is in fact an insurance on the fixed and movable machinery in it, ilie policy will be void, because insuiance oid a mill includes both building: and machinery."' Subsequent Insurance— The company is not liable for loss if any subsecjuent insurance is elfected in any othei- comjKUiy, unless anany may still dissent in writinj*' and refuse to pay.' Notice to Company. — The written notice to the comi)any should set out in detail, (1) the amount of the new insurance, (2) the propei'ty insured, and (.'>) the name of the new company.'* It was held not sulticient, where the assured showed the comjiany a letter received by him fi-om his moi'tuajice, which slated that the latter had ell'ected another insurance with anolher company." The notice may be j!,iven to any au- thorized aj^'ent of I he comi>any in writinji;',^'* but verbal no. '" Sec. lOH v>:\). But soe 1 A. R. 218. ' ' ;{ S. C. R. 182. '- G A. R. 231. INSURANCE IN OTHER COMPANIES. 71 bv tlu' assured himself, fouscciucntlv an insurance k /fa effected by a nLorli^aj^ce without the knowh'dye or consent of the assured, will not avoid a [jolicy effected previously by the niortj^agor.'-' Meaning; of. — Subse(iuent insurance has been held to mean further insurance. ('onse(|uently when a policy luis noted on it the fact (►f prior insurance in other companies, r.nd the assui'ed allows one of his jirior ])olicies to lajise, or one of them is cancelled, and he takes out a new ])olicy in another coin])any for the la]»sed or can- celled amonnt, the total amount of his insurance not beinp: incn'ased, the company remains liable, althou<;h he does not notify them of the change in his insui'anceJ' So, Avhere a comitany I'educed a risk to half the amount of the original i)olicv, and in the negotiations the assured told them that he would ]dace the reduceanies, cannot say that surh insurance so assented to, voids a itolicv which thev had issued some time before on the same ]troperty.^"' So, if a '•'44 u. (;. Q. B. r>->i\. ' » r> S. C. R. '23H; (> A. R. r>l'2; 14 A. R. oS-J. >5 29 U. C. C. P. 22. 1" 19 Out R. 245. ' f !i p^ /: IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I lit ISi ti& 2.0 1.8 Photographic Sciences Corporation 1-25 1.4 1.6 4 6" ► ^^" >\^> ^ 23 WEST MAIN STREET WEBSTER, N.Y. MSBO (716) 872-4S03 U. 72 FIRE INSURANCE LAW IN ONTARIO. company has knowledge of subsequent insurance, and nevertheless collects instalments on a pre- mium note, they will be estopped from setting up such further insuran«ce." But if a person through the same agent effect two insurances on the same pmperty in different companies, the fact that the agent of the first company neces- sarily knows of the subsequent insurance with the second company, is not sufficient notice to the first company.^® ' Appraiser. — An appraiser who adjusts a loss for a company, cannot waive a condition broken by the assured in failing to give proper notice of a subsefjuent insurance in another company.'" Company May Waivt Forfeiture.— If a com- pany is not liable, through failure on the part of the assured to obtain the company's assent to prior or subsequent insurance, it is still optional with the directors to pay or allow the claim, in case they think fit to waive the object ion.^** Conditions of Average. — Somelimes a com- pany requires the assured to maintain concurrent insurance, so that the aggregate insurance in force may equal seventy-five per cent, of the actual cash value of the i>roi)erty, with a condi- tion that if he do not he shall himself be a co- '• 18 Out. R. 79. > " 12 8. C. R. 446. "»12S. C. R. 44G. ao Sec. 170. INSURANCE IN OTHKU COMPANIES. 78 1 Y . insurer for an amount sufficient to mal^e up seventy-five per cent., and in that capacity sliall bear his proportion of any loss. It luis l)een held that this provision, which is known as the " Seven'ty-five per cent, co-insurance chiuse," is a condition, and not a mere direction as to the mode of ascertaining? the amount of the k)ss, and is void if not printed in conspicuous type and in ink of different colour from that of the statutory conditions, and also that it is a variation of con- ditions numbers 8 and 0.-^ When other insurance har been assented to by a company, on the same property, and such other insurance remains in force, the com]»any on the happeninj*- of any loss is only liable for the payment of a ratable projmrtion of such loss, without reference to the dates of the ditTerent policies.-^ Where a person owned a buildinj? composed of two parts, and insured with three comjKniies, tho first company had |2,(MM) on the front part and $1,000 on the rear i)art, the second company $1,0(M) on each, and the third company !i|52,(MM) on the whole buildinji;, !|7,0(M) in all, a tire took place and damaj^cd both front and rear, nearly all the danui«e beinj,' done to the rear, the (\mrt h<*ld that the first company must i>ay three-sevenths of the whole loss, and the other two cinnpanies each two-sevenths.^i ;i 3>23 A. R. 221. WU Hue. 108 (9). -«25 Out, P. H30. 74 FIRE INSURANCE LAW IN ONTARIO. When a company limits its liability to two- thirds of the actual loss, and there is other insur- ance which has been paid, the other insurance must first be deducted from the total loss, and two-thirds of the remainder taken.^* Evidence of Other Insurance, after Loss.— The assured in his proof of loss must furnish a statutory declaration declaring the amount of other insurances.^'' '-■•18 Out. K.TJ. 2«Sec. 168(13, c. 4). THE INSURANCE AGENT. 76 CHAPTER IX. THE INSURANCE AGENT. The Agent. — Insurance business is trnns- .aited by the (ompany tlii'oujj:h its otticers or aj,'ents. A coniiiany's ajicnts are usually divided 'nto the general afjent or injinaj»er, and the local agents and canvassers.^ Notice to General and Local Agent— Notice to a general agent binds the <'oni]»any, but it is otherwise when notice is given' to a local agent. To bind a company for all the acts of local agents, often of little experience, in every hamlet or village, would, be widely ditferent from bind- ing the company for the acts and dealings of a general agent, selected on account of his si)ecial business knowledge. The latter often acts undi'r powers of attorney, and issues i>oli4 ■ I 1, 76 FIRE IN8URANCK LAW IN ONTARIO. consiiltiug the bead oflice, in- whith case the agent is virtually the company.^ As a rule the knowledge of the gentral manager is the know- ledge of the eomiiany.*^ Verbal Notice To - It should be borne in mind that verbal notice to a company's agent is not snflHcient, when it should have been in the written application/ Person Deemed Agent of Company.— The agent or officer of .a company who assumes on behalf of the company to enter into any written agreement relating to any matter con- m'cted with the insurance, is deemed prima facie to be the agent of the company for the purpose/' TJut an agent cannot waive the conditions in a policy unless he has special authority to do so." When Company Deny Authority Of. — The (^ourt does not look, with favour upon a company which attempts to deny the authority of or notice (o its accredited agent.' A j)arty who goes around for the purpose of obtaining insurance cannot be looked on in any other way than as acting for the comj)any, and the com]mny cannot i»e free from liability for his acts, as where, for •-r)S. C. K. 157. =' 15 A. R. 3(53. *iB.C. 11. 182. "^Sec. 108 (21). "12 8. C. 11. 410. ' 4 S. C. R. 600. THB INSURANCE AOENT. 77 instance, he undertakes to put in witii the applica- tion a plan of the building.^ It has been remarked bv the Court, that insurance companies, with untiring ingenuity, try to throw all the conse- quences of all errors committed either in good faith or bad faith by their agents, on the unfortu- nate applicants." Appointment of Local Agent —When two general agents are joint agents, they must both join in the appointment of a local agent. A local agent, however, has no power to delegate his functions to a person employed to canvass for business, and the latter cannot sign interim receijits to bind the company.^^ Power of — As a general rule the local agent has no power to make contracts, but only to re- ceive application-s.^^ So an agent with powers limited to receiving and forwarding applications, has no authority to waive a forfeiture, caused by a transfer of the property without the com- pany's consent.^ 2 An agent instructed to receive payment of premiums, cannot as a rule accept anything but money.*3 Insurance in His Own Favour.— The agent of a company cannot, without the express sanc- 8 20 S. C. R. 208. » 8 A. R. .370. »»eS. C. R. 19. 'UDOnt. R. 494. 12 20 S. C. R. 585. i:«2 0nt. R. 410; 23 A. R. 342. lit J i • 78 FIRE INBUUANC£ LAW IN ONTARIO. tion of his principals, grant an insnrance in his own favour, binding on the company. And the same principle prevails in the case of a second insurance, although the prior policy has been granted with the express sanction and approval of the company.^* Mistake of. — A company cannot be released or excused from consequences resulting from the carelessnes's or want of skill of its agent, in a matter within the scope of his deputed au- thoritj^, because he is also employed as agent of the assured in another portion of the same in- surance transaction. Thus, where a person applied for insurance, and the canvasser filled up the application and made a diagram of the buildings in which was an error in distance, which the assured pointed out. The policy provided that if an agent filled up the application he should be deemed the agent for that purpose of the assured and not of the company, but the company was to be responsible for all surveys made by their agents personally. A fire having taken place the company resisted payment on the ground that the diagram was inaccurate, but was held liable as the inaccuracy was that of their own agent, and not that of the assured.^' When Agent of Assured.— The multitude of insurance cases show, that the company's agents »*27 Grant, 61. 15 2 8. C. R. 394. THE INSURANCE AGENT. 79 almost always prepare the application and de- sirriptions, or at least instruct the applicant to fill up the application form.^" It has been held reasonable for a company to provide, that when the company's aj^ent lills up the application, he shall be deemed the agent of the applicant and not of the company.*^ Duty to Company.— An insurance af?ent must keep faith with the company which employs him. To act as agent for a rival insurance company, is a breach of his agreement "to fulfil ccuiscien- tiously all the duties assigned to him, and to act constantly for the best interests of his em]»loyer," and is sufllicient justification for his dismissal.** i«8 A. 11. :{76. '7 5 A. 11. 'JOO. i"2.-> S. C. U. 601. k I 80 riRB INSURANCE LAW IN ONTARIO. ll , CHAITER X. LOSS, PROOF AND PAYMENT. Duty of Assured After Loss— After any loss or damage, it is the duty of the assured, as soon as pnicticable, to secure the insured property from danuige, or from further damage, and to separate as far as reasonably may be, the damaged from the undamaged property, and to notify the company when such separation has been' made, and thereupon the company is entitled to entry and access sufficient to make an ap- praisement or particular estimate of the loss or damage.^ Condition number 13 also provides that the assured in support of his claim, if re- quired and if practicable, is to separate as far as reasonably may be the damaged from the un- damaged goods, and is to exhibit for examination all that remains of the property which was covered by the policy.^ Company's Right to Enter. After any loss or damage, the company has by a duly accredited agent an immediate right of entry and access > Sec, 145(2). 2Sec. 1G8(13, d). LOSS, PROOF AND PAYMENT. 81 sufficient to survey and examine the property and make an estimate of the loss or damage.'' It may be noted that this provision allov/in;:; the company immediate entry may conflict with the provision above, under wliich the company may ent(*r after tlu» assured has secured the projierly and given nolice 1o the company. Joint Survey.— After any loss or damage the (•ompany and llie assured nuiy, under a term of the contract, or by sjiecial agreement, make a joint survey, examination, estimate, or a])praisement of the loss or dauuige, in which case the com- pany shall be de< uied to have waived all right to make a separate survey, examinaticm, estiuuite or appraisement.^ Immediate Notice of Loss.— A person en^ tithMl to nuike a claim under a poll<'y must forth- with after loss, give notice in writing to the com- pan3' of the loss.'* Particulars of Loss.— He must also deliver as soon after the loss as practicable, as i)articular an account of the loss as the nature of the case per- mits." Where a policy provided that the assured should within fourteen davs of a loss, deliver as particular an account of the loss, and of the value 3 Sec. 145 (1). »Sec. KW (13, a). < Sec. 145. Proviso. « Sec. US (13, /»). m'l.f.i.l.— 6 82 FIRE INSURANCE LAW IN ONTARIO. of the property destroyed, as tlie nature and cir- cumstances of the case would admit of, and deli- vered within that time only a very general account of his loss, and it appeared conclusively that he mipjht, immediately after the fire, with the assistance of his clerk, have made a tolerably correct list of the j?oods lost, he was considered to have broken the condition and was not allow- ed to recover the insurance monevs.^ And where the plaintiff's evidence showed that he mij^ht have furnished particulars much more fully and completely than he had done, the House of Lords decided that he was rijj;htly nonsuited, beraiise even if the question of compliance was U\r the jury, a verdict could not have been reasonably j»iven in his favour.* Declaration to be Furnished. — With the particular account of his loss the assured is also to furnish a statutory declaration, declarinji; (I) that the said account is just and true; '2) when and how the fire orijjinated so far as the declarant knows and believes; (.*{) that the tire was not caused through his wilful act or neglect, pro- curement, means or contrivance; (4) the amount of other insurances; (5) all liens «and incum- brances on the subject of insurance; (tJ) the i)lace where the property insured, if movable, was de- posited at the time of the fire." " 23 S. C. R. 26. « 1896, App. Cas. 372. »Sec. 108(13, c). LOBS, PROOF AND PAYMENT. 83 Booksof Account — The asHured must in support of liis ilaini, if requiivd, and if prac- ticable, produce books of account, warehouse receipts and stock lists, and furnish invoices and other vouchers, and copies of the written portion of all policies.^" Certificate from Magistrate — A person en- titled to make a claim under a policy after a loss, must produce, if reany accepts proofs from a mortgagee, the laller will be looked on as agent for the mort- gagor.'" '•'Sec. 174 (1). >+Sec. 108 (12). 1 ■> 18 Ont. 11. ;i55. '" 15 A. R. 202. 17 Sec. 168(14). '9 15 A. R. 421 LOSS, PROOF AND PAYMENT. 85 Court will Relieve when Proofs Defective.— To inwi'iit conipanit'S from making uimIuo objec- tions to proofs of loss furnished by the assured, it was enaeted in 1S74, and is now the hiw, that a eonipanv cannot escape liability by objectinji; to the sufticiency of the pniofs furnished in the followinj;- cases: (1) When by reason of necessity, accident, or mistake, the conditions as to ]>roof have not strictly been complied with; (2) when proofs have been furnished in jjood faith, and the com])any objects upon other grounds tlian for imperfect compliance with the condition's as to l)roof; {'A) when the company does not within a reasonable time after receivin}; the proofs notify the assured wherein they are defective; and (4) where for any other n^ason the Court considers it inequitable that the insurance should be void by reason of imperfect compliance with the con- ditions.^" Relievinj^ the assured under this i)rovislon from forfeiture for non-delivei'y of the proofs of claim, a}ii)lies to tlie time of delivery, as well as to the insufticiency of llie proofs.'-*^ When a company has received proofs of claim, and objects lo pay on other j^rounds than that the conditions as to juoof have not been complied with, the (\)urt nuiy at any trial n'fuse to allow the comjjany to say that the proofs have not been complied >vith.^^ »» Soc. 172 (1). ao 6^^. R, 427. 2'.13 Ont. R. -,81. 86 FIUK INSURANCE LAW IN ONTARIO. U I Hi ! i I i l! Wlieii a niortj^jigfce after loss delivers proofs to the coinpaiiy, who make no recjuest for furl her proofs, and make no objectlwii for months, and pay the loss to the niortjjraj;ee, the company will then be considered as havinj:^ dealt with the mort- j^ap'e as aj»:ent for the mortpij^or, and will bo estojiped from objecting? that the conditions as to proof have not been complied with, and will be considered as havinj^ waived further proofs.-=^ Company Estopped.— When a company ob- tains and wronjjjfuUy witliholds a policy from the assured, the comi)any will be estopped from sayinj; thsit the i)roofs were not put in within the time recpiired by the terms of the policy, and from setting;- up a condition, under which the proofs could only be waived by a notice in writing.^^ Frauds in Proofs of Claim. — Any fraud or false statenu'ut in a statutory declaration, in relation to any of the particulars which may lawfully be recpiired by a comi>any in proof of a loss, will vitiate the claim.-' And where an in- surance jiolicy is to be forfeited if the claim is in any resju'ct fraudulent, it is not essential that the fraud should be directly ])roved; it is sutTl- cient if a clear case is established by j)resumption or inference*, or by circumstantial evidenee.2=* 22 15A.il. 421. *•« 11 8. C. R. 212 '-'^Sec. If 8 (15). 8^26y. Q. R. 177, I V LOSP, PROOF ANO PAYMENT. 87 This condition docs not refer to Htatcnicnts as to title or ineiinibranees.-" Wlien a false statement is made witl. rej^ard to the loss of the contents, both bnildinfr and contents being insured, the whole claim is vitiated.-^ When a conjj)any havinj:: i»aid a loss, seeks to recover it back on the jironnd that the claim was vitiated for fraud, and false swearing;' as to the amount of the loss, the statutorv conditions can- not be invoked, when no proofs of loss were required.-'* How Amount of Loss Settled.— If any ditler ence arises as to the value of the pro])erty in- sured, of the projK'rty saved, or amount of the loss, such A'alue and amount, jind the proportion thereof (if any) to be paid by the c()m])any, shall, whether the rij;ht to I'ecover on the ]K)licy is disputed or not, and independently of all other (luestions, be submitted to the arbitration of some ]»erson to be chosen by both parties; or if they cannot a^ree on one ]M'rson, then to two persons, one to be chos<'n by the i)arty insured and the other by the company, and a third to be appointed by the ]M'rsons so chosen; or on their failinj? to a^ree, then by the County Judge of the county wherein the loss has hai>pened.'-'* Such reference is subject to the j>ro visions of the lu'no api)licable to references in actions, and •■»' 10 Out. li. 2Ht). •iMOOnt. U. 716. ■wy Out. R. 120. ••i»Sec. 108 (10). 88 VIUK INSURANCE LAW IN ONTARIO^ i! I I. . .■ i I : !: Sin the award is, if the comp.nny is in other respects liable, conclusive as to the amount of the loss and proportion to be paid by the company.^'' The proceedings to ascertain the amount of a loss are in the nature of an arbitration, which may be set aside if improper, and are not a valua- tion or appraisement which must necessarily be flnal.3^ The arbitrators must be indifferent and im- partial, and where it appeared that unknown to the assured, the arbitrator named bv him was a sub-agent of the company, the award was sot aside.32 When the assured has sutt'ered loss, and com- mences an action against the company, the com- panv cannot have the action staved until the loss has been settled bv arbitration as above men- tioned.3^ Where the full amount of the claim is award- ed the costs follow the event, and in other cases all questions of costs arc in the discretion of the arbitrators.''* Where therefore the arbitrators find the loss equal to the amount claimed they must award costs against the compan^'.^^'' Interest. — In actions on policies of insurance the jury may give interest over and above the ••'"Sec. IfiR (!(•)). :»• 19 A. R. 29B. 'MD A. R. 293. :« 4 Ont. R. 29.3 ; Seo also 4 A. R. 84. :'^ Sec. 168 (Ifi). 33 17 Ont. R. 95. LOSS, PROOF AND PAYMENT. 89 money rocovenibio t li croon ;^'' and wlion a rcforoc is to enquire and ascertain the amount of a Ions, he also lias authority to allow interest upon the amount of the loss as ascertained bv him.''' Amount of Loss. - Where a house insured for f2,5n0, is sold by the owner for f2(l() to a con- tractor, who is to pull it down and erect a new one, and a fire takes place before it is dismantled, the company cannot say that the loss is only |2iratiou of sucii time the assured is enlitled to demand and 1o receive such ])art of the retained sum as has not been assessed for.'"' •^nH Vict. c. 12, p. 1'20. «7 13 P. R. 459. XI 17 Can. h. T. 51. Editorial Review. ""•JO A. R. no."). <"Scc. 137 (1). Ill 90 FIRE INSURANCE LAW IN ONTARIO. Property Partially Damaged.- Wlien pro perty insured is only partially damaged, no aban- donment of the same will be allowed unless by the consent of the eomi)any or its ageu't." But the company is not entitled to the disposition, control, occupation, or ])ossession of the insured propert^'^, or of the remains or salvage thereof, unless the company undertakes reinstatement, or accepts abandonment of the property.^^ Loss in Removal. — In the case of the removal of projierty to escaj)e conthigration, the company must contribute to the loss and expenses attend- ing such act of salvage proportionately to the respective interests of the company or companies and the assured.^^ (Joods lost in course of removal to escape conrtagration, although the tire is in an- adjoining building, are considered as lost by fire as the proximate cause, and the company must pay the loss to the full amount of the insurance, and can- not ask the assured to bear a proportion of the loss." Loss, How and Where Payable.— All moneys payable under an insurance contract must be paid by the company at the office of its chief officer or agent in Ontario, in lawful money of Canada, and the Insurance Act provides that any *» Sec. 108 (5). ♦a Sec. X45 (1), •'••'Sec. 108 (.5). ** 12 A. R. 279. LOSS, PROOF AND PAYMENT. 91 aiifrcenient, condition or stiimlation to the contrary shall have no etfect.*^ When Payable.— The loss is not pavaMc tin- til 00 days after the completion of the proofs of loss, unless otherwise provided for by the con- tract of insurance.*" This is a privilej;e accorded to the company, and while the time may be fur- ther limited by aj^reement, it cannot be extended. It has been held that a variation by inserting a clause in the policy extending the 00 days, is not a variation by agreement of the parties, and be- sides such variation is not just or reasonable, and so is not binding.*^ If the assured commence an action against the company before the 00 days have elapsed, the action will be premature.*** The assured must complete his proofs so that 00 days may elapse before the expiration of the year within which an action must be commenced under condition number 22. If he do not, he will be prevented from bringing his action during the last 00 days, and when the year has elapsed be will be too late.** Interpleader. — When an insurance company finds that the insurance moneys are claimed by two different persons the proper course is to **Sec. U3. ^iSecH. 80. 81, 108(17). «4 A. R. 381; 6 S. C. R. 82. *' 1.5 s. c. R. no. <» 18 Ont. R. -dory. 92 FIRE INSURANCE LAW IN ONTARIO. apply to the Court for relief by way of inter- pleader. Thus, where the money was claimed both by a mortgagee and a person who bought subject to the mortgage, the company were dis- charged, and protected upon bringing the money into Court, and the two claimants were left to fight it out as to which was entitled.^" When Several Claim.— When several persons bring actions claiming shares in the insurance moneys the Court will consolidate the actions; and in all actions where several persons are in- terested the Court must apportion among the parties entitled any sum directed to be paid, and must give all necessary directions and relief.'* Garnishment of Insurance Moneys. - A claim under an insurance policy for a loss, the amount of which has been adjusted and settled, is not a debt which can be garnished, as the adjustment has not always the effect of determining that the loss must be paid. Such a claim cannot be attached so long as the company's right to have the money applied in rebuilding is open.'^^ In the Division Court, service of a garnishee summons on the local agent of a foreign insur- ance company is good service, and binds the com- pany, although the agent's powers may be limited to receiving and forwarding applications.^^ -'» 23 Ont. R. 627. •''» Sec. 146. "14 P. R.280. 53 14 P. R. 280. LOSS, PROOF AND PAYMENT. 98 When' the assured's furniture, which is exempt from the claims of creditors, is destroyed by fire, the company must pay the loss to the assured himself; such insurance moneys cannot be attach- ed by creditors." When Company May Rebuild or Re-instate. — In order to deter and hinder ill-minded per- sons from wilfully setting their buildings on- lire with a view of gaining the insurance money, it was enacted in England in 1774 that insurance companies should, when required by any jx^rsou interested in or entitled unto any building burnt down, demolished, or damaged by fire, or upon any ground of suspicion that the owner or occupier who had insured his building bad been guilty of fraud, or of wilfully setting his building 'On fire, cause the insurance money to be laid out and expended as far as it will go towards re- building, reinstating, or repairing such building, unless the person claiming the insurance should within GO days after the claim is adjusted, give security to the company that the insurance money shall be so laid out, or unless the parties claim- ing the moneys had within that time settled the matter among themselvf^s to the satisfaction of the company.'^'* This provision extends to and is in force in the Province of Ontario, and accordingly when a second mortgagee insures in the name of the " 19 A. R. 94. «■' 14 Geo. III., 1774 (Imperial), c. 78, a. 83. 'f 94 FIBS INSURANCE LAW IN ONTARIO. mortgagor, with the loss payable to the second mortgagee, the liist mortgagee as a person in- terested in the buildings, may take llie benefit of the insurance, by requiring the moneys to be ex- pended in re-building, re-instating or repairing.''" Condition number 18 enacted in 1870, provides that the company instead of making payment, may repair, rebuild or replace, within a reason- able time, the property damaged or lost, giving notice of their intention within fifteen days after receipt of the proofs of loss." Resolution to Pay, Not Always Bindinj?.— 'The fact that a company passes a resolution to pay a loss, in ignorance of the fact that a mis- representation was made, does not preclude the company from setting up the matter of the mis- representation.''^ »* 14 Ont. a. 487. See also R. S. O., 1887, c 102, s. 4 (1). "' Sec. 1G8 (18). 08 4G U. C. Q. B. 334. > r. 8UBR00ATI0N AND MORTaAOES. 96 CHAPTER XF. SUBROGATION AND MORTGAGES. Subrogation. — In all those cases, in which the assured has a primary ris;ht ajxainst third l)artie8 who have been the authors ot the injury, either throufijh nejjlij^ence or culpable misconduct, not amounting to felony, the company on makiu}? good the loss are entitled to enforce the remedy of the assured, and in his name to recoup them- selves for their expenditure. That right is re- cognized by the Courts as the right of sub- rogation.* In cases of insurance, when a third j)arty is liable to make good the loss, the right of sub- rogation depends upon and is regulated by the principle of securing full indemnity to the assured on the one hand, and on the other of holding him accountable as trustee for any advantage he may obtain over and above com- pensation for his hvss. The i)rimary considera- tion is to see that the assured gets full com])ensa- tion for the property destroy<'d, and the expenses .t 1 } May on Insurance, Sec. 454. 96 FIRE INSURANCE LAW IN ONTARIO. incurred in making good his loss. The next thing is to see that he holds any surplus for the benefit of the insurance company.^ When a person whose property is insured for part of its value, suffers a total loss, and having been paid the amount of his insurance, proceeds against the wrong-doer who caused the fire, and recovers a verdict for an amount which the jury find was the actual value of his proj)erty, he is not bound by such amount in any action which the insurance company may bring to recover back part of the insurance paid, but may show, if he can, that the real value is equal in amount to the verdict and insurance together.^ When a person who has suffered loss by fire, and has been paid by an insurance company, sues the wrong-doer, he is entitled to judgment for the full amount of his loss; the insurajicc money is not to be deducted, because if it were, it would give the wrong-doer the benefit of the insurance.* A fire insurance company by whom a loss has been paid, has no locu,s standi as co-plaintiff, in an action by the assured against the wrong-doer whose negligence has caused the fire.*^ Mortgage Clause. — The usual mortgage clause provides that the interest of the mortgagee in the ivolic^^ shall hot be invalidated by any act 2 12 Ont. B. G82. 3 12 Ont. R. 682. * 17 Ont. R. 712. »21 A. R. 297. SUBROaATION AND MORTGAGES. vt W 1 ce or neglect of the mortjy.agor or owner of the pro- perty insured; nor by the occupation of the premises for purposes more liazardous tlian are permitted by the policy. And further, that when the company shall pay the mortgaj^ee any sum for loss, and shall claim that as to the mortgaj^or or owner no liability therefor existed, ihe company shall at once be legally subrogated to all the rights of the mort- gagee under all the securities held as collateral to the mortgage debt, to the extent of such payment. Or the company may at its option pay to the mortgagee the whole principal due or to grow due. on the mortgage with interest, and shall there- upon receive a full assignment and transfer of the mortgage, and all other securities held as collateral to the mortgage debt. But no such subrogation shall impair the rights of the mortgagee to receive the full amount of his claim. The mortgage clause does not amount to a new insurance contract in favour of the mortgagee; and when It provides tliat the interest of the mortgagee in the policy shall not be invalidated by any act or neglect of the mortgagor or owner, it refers only to future acts, and if the mortgagor have been guilty of fraud in effecting the insur- ance, the policy will be void notwithstanding the mortgage clause." nOnt. R. 494. m'l.f.i.l. — 7 l^'l ii-i ' I I 98 FIRE INSURANCE LAW IN ONTARIO. The company must, however, pay the mort- gagee, although the mortgagor cannot enforce the policy on account of some act or neglect on his part, j»s where a mortgagor delayed to make proof of the loss, so that 'M) days could not elapse before the year v, is uj), w'ithin whiith an action might have been brought.' The fact that the policy is unconditional as regards a mortgagee, will not prevent the com- I)any from reiusling i)ayment to the assured or mortgagor, when the latter has been guilty of some act whi(;h has rendered the policy void.** When a com])any consents to the assignment of a policy to the assured's mortgag<'e, the policy continues to be voidable by the acts of the mort- gagor, unless tlie usual mortgage clause be attached to the policy." The w ords " when the company shall claim that as to the mortgagor or owner no liability exists,'' have been construed by the (^ourt to cover those cjises onlv in which in fact no liabilitv • t exists, and not those in which the company claims no liability.'" The company's right there- fore to take an assignment of the mortgage, and to be subrogated to tlu' rights of the mortgagee, exists only when the com])nny can for any reason resist ])ayment to the mortgagor, by showing a ' 18 Ont. 11. 355. » 8 A. 11. (544. "B A. 11. 1")!, 1" 18 Ont. 11. H.W. SUBROGATION AND MORTGAGES. 99 good defence to any action the mortgagor nuiy ln'ing.^^ An insurance company cannot take advantage of its own default, to bring into operation the subrogation clause in its ]tolicy for its own ad- vantage, as in failing to make a fonnal entry of assent on the ]K)licy, to a [>rior insurance brought to its attention.'- An insurance company is not justitied in paying a, mortgagee, without first contesting their liability to the mortgagor, and establishing that as to him they are not liable. Thus where a mortgagee insured the mortgaged premises in the mortgagor's name, and the mortgagor paid the ])remium, and the usual mortgage clause was attached, it was held that the insurance effected was for the benefit of the mortgagor, and that the subrogation clause inserted without the mort- gagor's knowledge or consent, could not have the ell'ect of converting the policy into ou'e insuring the inter<'st of the mortgagee alone, and that pay- riient to the mortgagee discharged tlu' nu)i'tgage.'-* Application of Money.n by Mortgagee. — All money payable ou' ;ui insurance to a. mortgagor juust, if the mortgagee so recpiires, be ap]>lievided that insurance moneys are not to be i)ayable until three months after notice is given by the assured, and the assured commeu'ce an action against the company before that time has elapsed, the action will be prenuitu''e.'' The year begins to run fnun the date of tlie destruction by tire, and not as has sometimes been contended, from sixty days after comi)letion of 1 Soo. 1G8 (22). - 15 S. C. R. 483, ■< .) S. C. R. 82. LKOAIi PROCKKDINOS. 103 proof, when Ihi' loss is payable aud the right to sue the couipauj accrues.* Parties to Action.— AVhen an assured assigns his interest in a policy by way of security, still retaining a benehcial interest, in case of a loss he may maintain an action against the company in his own name, although the assignee is a proper but not a necessjiry party.' An insurance timipany by whom ji loss has been paid, has no locus siiiiuVi as co-plaintitf in an action by the assured against the wrong-doer whose negligence has caused the fire." Court to Sue In. — AVhen a premium note ])jiy- able to a mutual comi)any has endorsed upon it, or across its face, in conspicuous type and in ink of a ditterent colour, the following words: "Any action which may be brought or commenced in a Division Court in respect or on account of this note or undertaking, or any sum to be assessed thereon, may be brought and commenced against the nuiker thereof in the Division Court for the division wherein th<» head oHice or any agency of the company is situate.'' the action may be brouglit as mentioned in such endorsement." When a decision is rendered in the Division Court, which in elVect or in U'rms declares invalid M2 A. R. 418. » 23 A. H. 449. «21 A. R 297. ' Sec. 138 (1). > I — 5 •■'■■, ""T'^'^.^7'. ,T' r 104 FIRE INSURANCE LAW IN ONTARIO. rJ ;i \'\ I % i I any jj^cneral aBsessment made by a mutual com- pany, such decision shall be apiiealable notwith- standing; the sum in dispute ui)on the appeal is less than |100.» One Action. — If several actions are broujjjht for insurance money, the Court must consolidate them, so that there shall be but one action in respect of the shares of all the persons entitled under the policy." When Infan;:s Concerned.— If an action is brouffht for the share of one or more infants, all the other infants, or their trustees or fiiuardians, must be made parties to the action, so that the rijj^hts of all the infants shall be dealt with and determined in one action. The persons entitled to receive the shares of infants may join with any adult persons claiming shares in the policy.^^ Evidence at Trial.— A company must plead all conditions on which they intend to rely, and evidence cannot be received as to the breach of a condition which has not been pleaded. ^^ Where a company did not plead that a tire was incen- diary, they were ii .; w-;leh the fire occurred.^^ '- : r '68 I ;) » Seu K's. 10 Sec. 146. 12 18S. C. R. 711. 1121 B.C. R. 288. LEGAL PROCEEDINGS. 105 When an insurance company demands and re- ceives payment of a nDte given for an insurance premium, althoujifli no policy has been issued, it is some evidence to go to a jury that the company has waived the right to cancel the contract, and is estopped from denying that the insurance is in force.^^ A special rei>ort obtained by a company, and not forming part of the {ii)plication, cannot be re- ferred to by the assured or put in as evidence against the company. ^^ When an insurance contract is evidenced by a sealed or written instrument, no term, condition, stipulation, warranty, or proviso, modifying or impairing the effect of the contract, shall be ad- mi .ssible in evidence to the prejudice of the assured or beneficiary unless set out in full on the face or back of the policy. The proposal or application must however be considered by the Court, and the Court must determine how far the company was induced to enter into the contract by an^' material misrepresentation contained in the application. ^° When an action is brought by a mutual com- pany to recover an ass(\Ksment on a premium note, the certiticate of the secretary, specifying tiie assessment and the amount due the com]uiny, must be taken and received as prima facie evi- dence thereof in any Court in the Province.^** 1^25 8. C.R. 151. i*8A. R. 644. IS Sec. 144(1). i«Seo. 135. 106 FIRE INSURANCE LAW IN ONTARIO. li! Questions for the Jury.— Tlie question of ma- teriality in any contract of insurance is a question of fact for the jury, or for the Court if there be no jury, and no admission, term, condition, stipu- hition, warranty, or proviso to the contrary con- tained in the application or ])roposal for insur- ance, or in the in-strument of contract, or in any agreement or document rehitinj? thereto, shall have any force or validity.^' On an api>eal from New Brunswick, it was held by the Supreme Coui't, that when in an ai)i>lication the assured only pledgjes himself to the truth of his answers, so far as known to him and material to the risk, such knowledge and materiality are for the jury.^^ Whether certain matters constitute a change material to the risk is wholly a question for the 10 jury- When in an action upon a Are policy, the ques- tions in issue between the parties are not confined to matters of mere account, but the company dis- putes its liability, and issues of fraud, misrepre- sentation and concealment are raised, all the issues cannot be referred to a referee for incjuiry and report, the assured is entitled to have a trial in the ordinary waj'.-" ImI Costs. — In any action on a policy, if the as sured beinj? i)laintitl', has in the opinion of the Court wilfully nej^lected or unreasonably rcfr.c: d 1^ Sec. 144 (3). »8 21 B. C. R. 288. in 23 A. R. 729. «o 12 P. R. 357. LEGAL PllOCEE DINGS. 107 re- le ial ;,-il to furnish lu'coswary iuforinatioii ivsiH'ctiii}? the proiM-rty for which tho iiiHuraiice iiionoy is chiiiii- ('(1, and if as a constMiuenco of such ncj^lect or refusal the company has been at expense in ob- taininj; inf(u*niation or evidence, the Court may, in disposinjif of costs, take into consideration the expenses so incurred by tlie company. -"^ Execution. — No execution may issue ajj^ainst a mutual or casli-mutual company uiH)n a jud}?- ment until after the expiration of (U) days from the recovery thereof; but if a company has failed to observe the law, and has collected morct than sixty per cent, of the premium in cash at the time the i)olicy was eii'ected, execution may issue forth- with, upon a judgment recovered on such a policy.22 Remarks From the Judges.— It is worthy of remark that insurance decisions show that the Courts are not inclined to look with favour on a company which raises technical objections to the ])aynient of an honest loss, when such remarks as these fall from the lips of a]>pellate Judges: — ^' A less meritorious defenve cannot be discovered among the cases which abound in our rei>orts, in which insurance companies of litigious spirit have been defendants.-"* I have ainu'oached the case with an anxious desire to assist the assured, if possible, against what I consider to be a most 8 1 Seb. 172 (2). "Sec. HI. 234 A. R. 391. 11 i i I i -r ]■ I T . 1: ; . , 1 108 FIRE INSURANCE LAW IN ONTARIO. unrijflitoous defence, and I rej^ret that a company should have felt itself justified in setting up a defence of the kind, when no fraud was contem- plated, and no possible injury could have been sustained by the company in consequence of the act of the assured.^* Resistance to a just claim is a poor advertisement for any companj^; the de- fence is most discreditable to any company which desires to have the name of being respectable. I am therefore with regret of opinion that the objection must be allowed."-'' Fire Investigations.— On receiving a written request from any officer or agent of a company, with security for the expenses of an investigation, any justice of the peace may at once proceed to hold an investigation as to the origin or cause of any Are that has happened within his county or district, and as to the persons, if any, i)roflting thereby.2« When it has been made to appear to a coroner that a fire, which has wholly or in part destroyed any house or other building, was the result of culpable or negligent conduct or design, or occurred under such circumstances as in tl^e interests of justice and for the due protection of I)roperty requires investigation, it shall be the duty of the coroner to institute an enquiry into the cause or origin of the fire, and the person requiring such investigation shall alone be responsible for 2^0A. R. 231. 25 18 A. R. 446. 28 Sec. 174 (2). LEGAL PROCEE'^INGS. 109 the expenses of it.^^ Before entering on the in- vestigation he must obtain the consent in writing of either the Attorney-General or County Attor ney of the county where the investigation is to be hel(1.2* For the purpose of an investigation the coroner or the justice of the peace has power and authority to summon before him all persons whom he deems capable of giving infonnation concerning the fire, and to require the production of documents, and may examine such persons on oath, and must re- duce their examinations to writing, and return the same to the clerk of the peace for the district or county within which they have been taken. ^^ The coroner may in his discretion, or in con- formity with the written requisltiouf of any agent of an insurance company, or of any three house- holders in the vicinity of the fire, empanel a jury chosen from among the householders resident in the same vicinity, to hear the evidence, and to render a verdict under oath in accordance with the facts.3o The Lieutenant-Governor in Council may n\)- point provincial coroners, each of whom shall be both a coroner and a justice of the peace for every county and part of Ontario, for the purpose of holding fire investigations.^^ -'^R. S. O., 1887, c. 217, ss. 1,8, '-'8 Sec. 175 (3). » Sees. 174 (3, 7), 17') (r,) ; R. R. O., 1887, c. 217, s. 2. 3" R. S. O., 1887, c. 217, H. 3. 3i See. 175 (1). ^1 I'ol ' t 1 J ■1 r i i ' .1 ' 1 ■h If III i n 110 FIRE INSURANCE LAW IN ONTARIO. No director or officer of the insurance com- pany, nor any person interested in the policy, shall act as magistrate or coroner in any fire in- ve8tij;ation, nor shall any such act for the magis- trate or coroner, as clerk, reporter or otherwise*, in taking down or recording' the depositions or evidence.*^- Any director or officer of the insurance com- ])any, or the assured, or any person claiming un- der the policy, or any person ])rejudicially affect- ed by any of the evidence so far received, shali have the riL'^ht to attend personally and by counsel, the investigation or proceeding as a parlv thereto, and to call, examine, cross-examine, or re-examine witnesses, as the case may be.*^'^ ^•■'Sec. 174(5). :« Sec. 171 (4). APPENDIX. THE ONTARIO INSURANCE ACT, 1897. 60 "VICT. C 3S An Act to conf3olitlate and amend the Acta respecting Insurance. Assented to 13th April, 1807. (The Sections thereof affecting Fire Insurance Business.) HER MAJESTY, by and with the advice and consent of the Lej^islative Assembly of the Province of Ontario, enacts as follows : 1. This Act may be cited as The Ontario Insurance Act, 1897. Short title. I3« Where the following words and expressions respectively occur in this Act, or in the schedules hereto, they shall be con- strued in the manner hereinafter mentioned, unless a contrary intention appears : — (23) "Contract" means and includes any contract or agree- "Contract." ment sealed, written or oral, the subject matter of which is within the intent of sub-section 35 of this section. (24) " Policy " includes any contract of insurance within the "Policy." meaning of this Act. (27) "Premium" includes any valuable consideration given «p,t;niitim." or promised for insurance. t 112 FIRE INSURANCE LAW IN ONTARIO. iiJ| '* It m ■\ I I- m r'l " rretnium note." "The insurer." "The assured. " " Insurance." " Mutual in- Burancc, " " Mutual com- pany." " Insurance on the cash plan." " Cash-mutual company." "Member." (28) "Premium note" means an instrument given as con- sideration for fire or live-stock insurance, whereby the maker undertakes to pay such sum or sums as may be legally demanded by the insurer, the aggregate of such sums not to exceed an amount specified in the instrument. (31) "The insurer" means tlie corporation undertaking the contract of insurance, or of reinsurance as the case may be. (32) " The assured " means the person whose property, life, safety, health, fidelity or insurable interest is insured. (35) "Insurance" includes the following, whether the con- tract he one of primary insurance, or of reinsurance, and whether the premium payable be a sum certain, or consist of sums uncertain or variable in time, number or amount. (c) Insurance of property against any loss or injury from any cause whatsoever, whether the obligation of the insurer is to indemnify by a money payment, or by restoring or reinstating the property insured. (42) " Mutual insurance" means, in the case of fire or live- stock insurance, insurance given in consideration of a premium note or undertaking with or without an immediate cash payment thereon ; and " mutual company " means a company empowered solely to transact such insurance. (43) " Insurance on the cash plan " means insurance given for a mone^' conr^ideration without premium note. (44) " Cash-mutual company " means a company organized to transact mutual insurance, but empowered to undertake contracts of insurance on both the cash plan and the premium note or mutual plan. (45) "Member" as applied to any mutual or cash-mutual company transacting fire or live-stock insurance means a policy- holder on the premium note plan, but as to those mutual or cash- mutual companies which, in terms of this Act have joint stock capital, " member " includes, where the context so requires, any holder of one or more shares of such capital. ^ 1 n as con- he maker demanded Bxceed an takinf* the r be. perty, life, r the con- id whether t of sums y from any lurer is to istating the e or live- premium payment empowered anco given Tf^anixed to :e contracts nm note or ash-mutnal lis a pohcy- .ml or cash- joint stock quires, any THE ONTARIO INSURANCE ACT, 1897. 113 48. The securities deposited with the Minister shall be sub- <'ovpnimont de- ject to administration only in respect of any contract whi^h falls for ccr'taii^cou- within the intent of section 2, and which further has for its *''''^'*^ ""'y- subject some property in the Province, or property in transit to or from the Province, or the life, safety, health, fidelity, or insurable interest of some resident of the Province, or where the contract itself makes the payment thereunder primarily payable to some resident of the Province. «S1. Where a company has ceased to transact business in i)„ty of com. Ontario, and has given written notice to tliat effect to the Minister '"*"?' ^■'■"S'UK and to the Insurance Registrar, it shall re-insure all such out- standing contracts as are within the intent of section 48 in some company or companies registered to do business in Ontario, or obtain a discharge of such contracts, and its securities shall not be delivered to the company until such re-insurance is effected to t\w satisfaction of the Minister. ■75. Subject to Statutory condition 23 of section 108, delivery Notiofs undor of any written notice to any insurance corporation for any purpose ^ "' • of this Act, where the mode thereof is not otherwise expressly provided, may be by letter delivered at the chief oftice of the cor- poration in Ontario, or by registered post letter addressed to the corporation, its manager, or agent at such chief oflice, or by snch written notice given in any other manner to an authorized agent of the corporation. §0. Every lawful claim against an insurance corporation Wln>n claims under any contract within the meaning of section 2 shall become r,^'y,ii,i,. '^^ ^ legally payable on the expiration of sixty days after reasonably suflicient proof has been furnished to tlie corporation of the happening of the event on which such claim was by said contract to accrue, and, where property was insured, after like proof of such additional matters as the law requires ; and any rides, con- ditions, or stipulations to the contrary shall as against the assured be void ; but the insurance corporation may in its discretion pay the claim at any time before the expiration of ti.e sixty days. 81.— (1) Any insurance corporation shall be liable to have Roni-try sns- its registry suspended by tlie Registrar upon the failure of the fn"oivo,!cy Rl'L.r.i.L,— 8 i\ lU FIRE INSURANCE LAW IN ONTARIO. 'l:!!ii )^ ; Where corpora- tion resumes payment. corporation to pay an undisputed claim, or an insurance contract for the space of sixty days after being legally payable, or if dis- puted, after iinal judgment and tender of a lega' valid discharge, and (in either case) after notice supported by affidavit of the corporation's default delivered to the Registrar. (2) Where the registry of a corporation has been suspended under the preceding sub-section, but the corporation within sixty days after the notice therein provided has fully paid all undisputed claims and final judgments upon or against the corporation, the Registrar, upon proof of the facts, may revive the registry of the corporation and issue his certificate of such revivor. Continued de- (3) If within the sixty days mentioned in the next preceding sfxty days!" '^"^ sub-section, the corporation has not fully paid all undisputed claims and final judgments, the Registrar, upon proof of the fact, shall cancel the registry of the corporation. Where time of u) If the enactment under or by virtue of which the corpora- default limited ,. ^ ' . , , - ,., J . X i.^, .• l)y other enact- tion was mcorporated, or by which tlie contracts of the corporation inent. g^j,g regulated, prescribes payment of undisputed claims and final judgments within less than sixty days, this section shall not be deemed to extend tlie time so prescribed for payment, nor to extend the right of the corporation to revivor of registry here- under beyond the time limited by the said enactment. Board mny adopt u tarifT of rates. {All Provincial Insurance Companies.) ?>0. The board of directors may * * * subject to the provisions of this Act, adopt a table of rates, premiums or premium notes, as the case may be, and vary such table from time to time, and determine the amount of the contract to be undertaken. Reinsurance of risks. 10!i. The board may make arrangements with any other company registered to transact business in the Province for the reinsurance of risks, on such conditions witli respect to the pay- ment of premiums thereon as may be agreed between them. ! contract r if dis- Bcharge, t of the ispended tiin sixty (disputed ition, the ry of the preceding [idisputed the fact, 3 corpora- irporation and final ,11 not be nor to itry here- ct to the Tiiunis or able from ract to be any other ice for the o the pay- heni . THE ONTARIO INSURANCE ACT, IHn?. MUTUAL AND CASH-MUTUAL FIRE INSURANCE COMPANIES: THEIR INTERNAL MANAGEMENT. 115 106. Sections 107 to 141 inclusive, shall apply only to Application oi , „ . . seci. 107-141. mutual and cash-mutual fire insurance companies. 1. Admission and Withdrawal of Members. 107. The company may insure on the premium note plan powtr to insure, any property within the scope of the company's license, and the maker of the premium note shall as from the date of the accept- ance of the risk by the company be a member of the company. Members, and shall be entitled to the like rights, and be subject to the like liabilities, as other members of the company. 108. In a cash-mutual company the premium note shall, Liability on subject to section 111, be liable for claims arising against <;j^g p""""™ "° company generally. 109. No member of the company shall be liable in respect Liability of of any loss or other claim or demand against the company, ™''"' '^"' otherwise than upon and to the extent of the amount unpaid upon his premium note or undertaking. 110. Any member of the company may, with the consent of Members the directors, withdraw therefrom upon such terms as the ^^'' ' rawing, directors may lawfully require. 111. The party insured :liall, if insured against fire on the cancel lation of premium note plan, be liable ^o pay his proportion of the losses, i^olicies. expenses and reserve of the company to the time of cancelling the policy, and on payment of his proportion of all assessments then payable and to become payable in respect of losses and expenses, and reserve up to such period, shall be entitled to a return of hia premium note or undertaking. 4. Premium Notes and Assessments. (Mutual and Cash-Mutual Fire Insurance Companies.) IST.— (1) The Company may accept the premium note or the Compnny may ndertaking of the assured for assurance, and may undertake Jl^'j'^i,*'' >'"'™'"'" 1 i P . li: ; 1 '' il aaa 116 FIRE INSURANCE LAW IN ONTARIO. Form of prenuinn notes. :*'■■ , 5:;!- r. I: li \ •i\ Minimum rates. contracts in consideration thereof, said notes or undertaking's to be assessed for the losses, expenses and reserve of the company in the manner hereinafter provided. (2) Where the premium note or undertaking is made upon a sheet or page which contains other matter, the premium note or undertaking shall be so entitled in conspicuous type, and shall be separated from such other matter by a blank space of at least an inch wide carried across the sheet or page, and if such other matter requires, or is intended to receive the assent of the maker of the premium note or undertaking, such assent shall be evi- denced by a signature wholly distinct from the signature to the premium note or undertaking, and any violation of this section shall render the premium note or undertaking absolutely null and void ; but the notice required by section 138 of this Act to be embodied in or endorsed upon the premium note shall not be deem- ed to be " other matter '' within the meaning of this sub-section. 1)38* The rate to be charged or taken by way of premium note for ir>iuring first-class isolated non-hazardous property shall not be less tlian one dollar per one hundred dollars per annum, and the minimum rate of insurance upon other property shall be increased relatively with the increased risk, accordmg to the nature of such property : provided that premium notes of not less than $1 per $100 per annum may be charged or taken when and so long as the gross amount at risk exceeds $2,000,000, and the total assets of the company do not fall belo.s two per centum of the gross amount at risk, or so long as the company keeps on deposit with the Provincial Treasurer the full amount required of new companies licensed after the commencement of this Act. Tart payment 12$>« — (1) The directors may demand in cash a part or first may be de- payment of the premium, or premium note or undertaking at the time of applica- time that application for insurance is made, and such first pay- ance."'^ "^"' ment shall be credited upon said premium note or undertaking or against future assessments, but not more than sixty per centum of any premium or premium note or undertaking shall be paid in cash at the time of such application or of effecting the insurance THE ONTARIO INSURANCE ACT, 1S'.>7. 117 (2) Instead of requiring the whole of the first payment to be ^'fatpaymmt ,. ,,.,i- *. aiT, 1.1 on premium made in cash at the time of insuring, the directors may make the noto maybu said sum payable in annual instalments, the first of which shall |{|g|ai/°,'\g"'*'^ be payable on the day of insuring, and the remaining instalments shall be respectively payable on the first day of each subsequent year of the term of insurance. The said annual instalments may be known and described as •' the first (or second, or as the case may be) fixed payment." Provided that non-payment of any of the fixed payments sub- Proviso, sequent to the first shall not forfeit the insurance unless thirty days' notice of the fixed payment due, or to become due, has been mailed to the person by whom the fi.xed payment is payable, directed to his post office address as given in his original applica- tion, or otherwise in writing to the company. 130* AH premium notes or undertakings belonging to the AsaeBBmont of company shall be assessed under the direction of the board of i"""™'"'" '^°^' directors, at such intervals from their respective dates, for such sums as the directors determine, and for such further sums as they think necessary and as are authorized by this Act for losses, expenses, and reserve, during the currency of the policies for which said notes or undertakings were given, and in respect of which they are liable to assessment ; and every member of the company, or person who has given a premium note or undertaking, shall pay the sums from time to time payable by him to the com- pany during the continuance of his policy in accordance with the assessment, and the assessment shall become payable in thirty Notice to bo days after notice thereof has been maUed to tlie member, or per- ?'rr.1^'il'° *^ *" no BOBS m one* son who has given the premium note or undertaking, directed to his post office address, as given in his original application, or otherwise in writing to the company. 131. If the assessment on the premium note or undertaking Policy to bo upon a policy is not paid within thirty days after notice mailed BSBUgmpnfor as in section 130 enacted, the contract of insurance, for which the "•!^.'" "?* P*''' assessment has been made shall be null and void as respects all days; claim for losses occurring during the time of non-payment ; but the contract shall be revived when the assessment has been paid, 1 < 118 FIRE INSUIIANCE LAW IN ONTARIO. but aliall be revived by sub- sequent pay- ment. unless the secretary f{ives notice to the contrary to the assessed party in the manner in this Act provided, but nothinj^ herein con- tained shall relieve the assured from his liability to pay the assessment or any subsequent assessments, nor shall the assured party be entitled to '•-= -ver the amount of loss or damage which happens to property in ured under the contract while the assess- ment remains due and unpaid, unless the board of directors in their discretion decide otherwise. Requisites of notice of assess- undertaking maib?a incut. "^ I', Asspssnipnt, liow propor- tioned. 132. A notice of as^-^ssment upon any premium note or <" ;1 shall be deemed sufficient if it embodies the register n n' of the contract, the period over which the assessment o.. -en>;.-. I'le amount of the assessment, the time when and *;V.e plac< where j^ -.yc.,ble. 133. Subjecf' to ^,he pre. ;^ ;■> - u>7i 128, the assessment upon premium notes or undcrtakiUf^p b ^i. ivhvays be in propor- tion to the amount of the notes or undertakings. *' Provided that where any company alters its premium note rate, but still holds in respect of subsisting contracts premium notes of the prior rate, it shall be lawful for the company, as between the respective premium notes so differing in rate, to make and levy such differential assessments as will in risks of the same amount, and of the same class of hazard, equalize the cost of insurance to the makers of the respective premium notes." Company may 1341. If, for thirty days after notice of assessment mailed as sue for assess- aforesaid, a member or other person who has given a premium ments on pre- "^ n i mium notes. note or undertaking refuses or neglects to pay the assessment, the company may sue for and recover the same with costs of suit, and such proceeding shall not be a wuiver of any forfeiture incurred by such non-payment. Certifl ateofiho 135. Where an assessment is made on any premium note or secretary to bo undertaking given to the company for a risk taken by the com- denceof amount pariyi o>^ ^s a consideration for any policy of insurance issued, or due to the com- ^o be issued by the company, and an action is brought to recover the assessment, the certificate of the secretary of the company THE ONTAKIO INKUllANCE ACT, 18'.)7. HO 8pecifyinf4 the assessment and the amount due to the company on the note or undertaking^ by means thereof, shall be taken and received as prima facie evidence thereof in any Court in this Frovince. 136. — (1) The company may form a reserve fund, to consist Ki-sirve fund, of all moneys which remain on hand at the end of each year, after payment of the ordinary expenses and losses of the company, and for that purpose the board of directors may levy an annval assess- Annual ment not exceedinj^ ten per centum on the premium notes or **^'^'^*'"*^"'- undertakings held by the company, and the reserve fund may from time to time be applied by the directors to pay off such lia- bilities of the company as may not be provided for out of the ^^^ applitil. ordinary receipts for the same or any succeeding year. (2) The reserve fund shall be invested as provided by sec- How inveskd. tion 1)2. I f as I3T. — (I) If there is a loss on property insured by the com- DirrctorH muy retain ainoimti lircmium notes. pany, the board of directors may retain the amount of the '"''*""""""""*"' premium note or undertakinf^ {4iven for insurance thereof until the time has expired for wliich insurance has been made, and at the expiration of said time the insured shall have the rif^ht to demand and receive such part of the retained sum as has not been assessed for. (2) On the expiration of forty days after the term of insur- Kctum of ance ended, the premium note or undertakintj uiven for the term i'»"''n>iuin noto ' ' "^ " alter lUHurunco shall be absolutely null and void, except as to first payment or emied. fixed payments reniainin<^ unpaid, and except as to lawful assess- ments of which written notice pursuant to sections 180 and 131 has been ^iven to the maker of the premium note or undertaking^ durinf» the currency of the policy or witlun the said period of forty days, and on the expiration of the said period the premium note or undertakin{» shall, upon application therefor, be {^iven up to the maker thereof, provided all liabilities with which the premium note or undertakin<; is chargeable as aforesaid have been paid. 138. — (1) Any action coj^niznble in a Division Court upon or .^.tjons in for any premium note or undertaking, or any sum assessed or to divigion courts, ^ r>' J where brought. be assessed thereon, may be entered and tried and determined ia i f: 120 FIRE INSURANCE LAW IN ONTARIO. • ■' i % ill Proviso. Appeals in Division Court actions. Premium notes not to create lien on laud. Powers of incorporated companies to in sure on the cash-proniium principle. the court for the division wherein the head office or any agency of the company la situate. Provided always, that the provisions of this section shall not apply to or include any such premium note or undertaking, nor any sum assessed thereon, unless within the body of such note or undertaking or across the face thereof, there was at the time of the making or entering into the same, printed in conspicuous type and in ink of a color different from any other in or on such note the words following : " Any action which may be brought or commenced in a division court in respect or on account of this note or undertaking, or any sum to be assessed thereon, may be brought and commenced against the maker hereof in the Division Court for the division wherein the head office or any agency of the company is situate. (2) Where, in any Division Court suit or proceeding, a deci- sion is rendered which, in effect or in terms, renders invalid any general assessment made by a mutual insurance company, such decision shall be appealable, notwithstandiug the sum in dispute upon the appeal is less than f 100, and all the provisions contained in sections 148 to 153, both inclusive, of The Division Courts Act shall apply to such appeal. 139« No premium note or undertaking shall create a lien upon lands on which the insured property is situate. 140. Any cash-mutual fire insurance company registered under this Act may effect any insurance upon the cash-premium principle, for a period not exceeding three years, on farm and other non-ha/ardous property, and for one year or less on any other class of property, but the amount of cash insurances in one year shall be limited, so that the cash premiums received thereon during any one year shall not be in excess of one-half of the amount still payable in respect of premium notes or undertakings on hand on the thirty-first day of December of the previous year, according to the statement made under section 96, and all the property and assets of the company, including premium notes and undertakings, shall be liable for all losses which may arise under insurances for cash premiums in any such company, THE ONTARIO INSURANCE ACT, l-W. 121 141. — (1) No execution shall issue against a mutual or cash- iBsuoof cxeeu- mutual company upon a judfjment until after the expiration of tjonipany"^ sixty days from the recovery thereof, but this section shall not apply to any judgment recovered on any policy or undertaking of the company issued or given where more than sixty per centum of the premium, or premium note, or undertaking, was paid in cash at the time of the insurance or the application therefor. (2) A Judge in chambers, or a Master in chambers, shall upon the recovery of a judgment against the company, upon the application of the person in whose favor the same has been recovered, upon notice to the company, inquire into the facts, and if he shall certify that more than sixty per centum of the premium note, or undertaking, was paid in cash at the time of the insur- ance, or upon the application therefor, execution may be forthwith issued upon such judgment. I i tered nium and any one reon the ings ear, the md der irio. GENERAL PROVISIONS RELATING TO CONTRACTS OF INSURANCE. 14/J. Sections 143 to 14G inclusive shall apply to contracts of insurance generally. Iii li CONTRACTS OF FIRE INSURANCE. 1. General Provisions. {All Fire Insurance Companies.) Property which 100. Every company licensed and rcf^istered for the tran- may be msured, g^gj^j^jj ^f g^g insurance may, witliin the limits prescribed by the license and registry, insure or reinsure dwelling houses, stores, shops and other buildings, household furniture, merchandise, machinery, live stock, farm produce, and other commodities, against damage or loss by fire or lightning, whether the same happens by accident or any other means, except that of design on the part of the assured, or by the invasion of an enemy, or by insurrection. Torma ol con- tracts. Proviso. Bennwing coutracts. lOY- — (1) Contracts of fire insurance shall not exceed the term of three years, and the insurance of mercantile and manu- facturing risks shall, if on the cash system, be for terms not ex- ceeding one year. Provided that contracts of fire insurance by any mutual or cash-mutual fire insurance company may be for any term not exceeding four years. (2) Any contract that may be made for one year or any shorter period on the premium note system, or for three years or any shorter period on the cash system, may be renewed at the discretion of the board of directors by renewal receipt instead of policy, on the insured paying the required premium, or in the case of a contract on the premium note system by giving a new premium note or undertaking ; and any cash payments or pre- mium notes for renewal must be made at the end of the year, or other period for which the premium note was granted, otherwise the policy shall be null and void. 2. Statutory Conditions and Provisions Relating Thereto. (Binding all fire insurance contracts whatsoever in Ontario.) Statutory condi- 168. The conditions set forth in this section shall, as against oteliry^piAiJj '^® insurer, be deemed to be part of every contract (whether unlesB varied, sealed, written or oral), of fire insurance hereafter entered into or renewed or otherwise in force iu Ontario with respect to any THE ONTARIO INSURANCE ACT, 1897 125 nies.) blie tran- d by the }, stores, 3liandisc, modities, ;he same lesign on y. or by (ceed the d maiiU- not ex- utual or prm not or any years or d at the stead of in the a new or pre- hear, or herwide to. ario.) against vhether 3d into to any property therein or in transit therefrom or tliereto, and shall be printed on every such policy with the heading Statutory Conditiom, an' itipulation to the contrary, or providing for any variation, ad ,ii or omission, shall be binding on the assured unless evi- denced in the manner prescribed by sections IGU and 170. Statutory Conditions. (1) If any person or persons insures his or their buildings or Mismprosenta- goods, and causes the same to be described otherwise than as they tion '"■ """«*"""• really are, to the prejudice of the company, or misrepresents or omits to commutiicate any circumstance which is material to be made known to the company, in order to enable it to judge of the risk it undertakes, such insurance shall be of no force in respect to the property in regard to which the misrepresentation or omission is made. 1 After application for insurance it shall be deemed that any p( 'ent to the assured is intended to be in accordance with the terui^ of the application, unless the company points out. in writ- ing, the particulars wherein the policy differs from the aj; lication. (3) Any change material to the risk, and within the control or knowledge of the assured, shall avoid the policy as to the part affected thereby, unless the change is promptly notified in writing to the company or its local agent ; and the company when so notified may return the premium for the unexpired period and cancel the policy, or may demand in writing an additional pre- mium, which the assured shall, if he desires the continuance of the policy, forthwith pay to the company ; and if he neglects to make such payment forthwith after receiving such demand, the policy shall be no longer in force. (4) If the property insured is assigned without a written permission endorsed hereon by an agent of the company duly authorized for such purpose, the policy shall hereby become void ; but this condition does not apply to change of title by succession or by the operation of the law, or by reason of death. (5) Where property insured is only partially damaged, no abandonment of the same will be allowed unless by the consent Policy Bpnt to be B' by fire caused by any other explosion or by lightning. (12) Proof of loss must be made by the assured, although the i>roof of loss loss be payable to a third party. when paya»)l.' to ^ •' r J other than (13) Any person entitled to malco a claim under this policy is ^*''"'^•'"• ,,..,. ^. . L J Direttions to be to observe the following directions : ohgtTvcti on , V TT • . ii •,, .- 1 . . .. . •.• ... making claim. (a) He 18 forthwith after loss to give notice in writing to the company. (h) He is to deliver, as soon after as practicable, as particular an account of the loss as the nature of the case permits. 'I ' 1 128 FIRE INSURANCE LAW IN ONTARIO. ',1, -.1' (c) He is also to furnish therewith a statutory declaration, declaring — (1) That the said account is just and true. (2) When and how the fire originated, so far as tlie declarant knows or believes. (3) That the fire was not caused through his wilful act or neglect, procurement, means or contrivance. (4) The amount of other insurances. (5) All liens, and incumbrances on the subject of insurance. (6) The place where the property insured, if movable, was deposited at the time of the fire. (d) He is in support of his claims, if required and if practic- able, to produce books of account, warehouse receipts and stock lists, and furnish invoices and other vouchers ; to furnish copies of the written portion of all policies; to separate as far as reason- ably may be the damaged from the undamaged goods, and to exhibit for examination all that remains of the property which was covered by the policy. (e) He is to produce, if required, a certificate under the hand of a magistrate, notary public, commissioner for taking affidavits, or municipal clerk, residing in the vicinity in which the fire happened, and not concerned in the loss or related to the assured or sufferers, stating that he has examined the circumstances attending the fire, loss or damage alleged, that he is acquainted with the character and circumstances of t'le r.s8ured or claimant, and that he verily believes that the assured has by misfortune and without fraud or evil practice sustained loss and damage on the subject assured to the amount certified. (14) The above proofs of loss may be made by the agent of may bt! made by the assured, in case of the absence or inability of the assured agi-nt. himself to make the same, such absence or inability being satis- factorily accounted for. PalHo •tatemont (1''') ^^V '""aud or false statement in a statutory declaration, of fraud in relation to any of the above particulars, shall vitiate the claim, vitiates claim. THE ONTARIO INSURANCE ACT, 1897. 129 tent of issured satis- ration, claim. (16) If any difference arises as to the value of the property Arbitration in insured, of the property saved, or of amount of the loss, such ditrercnues value and amount and the proportion thereof (if any) to be paid by the company shall, whether the right to recover on the policy is disputed or not, and independently of all other questions, be submitted to the arbitration of some person to be chosen by both parties, or if they cannot af^ree on one person, then to two per- sons, one to be chosen by the party assured and the other by the company, and a third to be appointed by the persons so chosen, or on their failing to agree, then by the County Judge of the county wherein the loss has happened ; and such reference shall be subject to the provisions of the laws applicable to references in actions ; and the award shall, if the company is in other respects liable, be conclusive as to the amount of the loss and proportion to be paid by the company ; where the full amount of the claim is awarded the costs shall follow the event ; and in > other cases all questions of costs shall be in the discretion of the arbitrators. (17) The loss shall not be payable until sixty days after the Loss when completion of the proofs of loss, unless otherwise provided for by ^*^'* ' "' the contract of insurance. (18) The company, instead of making payment, may repair, Company may rebuild or replace, within a reasonable time, the property dam- of'lmyUig""''"'^ aged or lost, giving notice of their intention within fifteen days after receipt of the proofs herein required. (19) The insurance may be terminated by the company by Insurance •• A- iiii/Vi -t • f ,1 1 1 . .-1. teiiuiniibli'on givnig notice to that elTect, and, if on the cash plan, bv tendering noticu. tlierewith a ratable proportion of tiie premium for the unexpired term, calculated from the termination of the notice; in tho case of personal service of tlie notice, live days' notice, excluding Sunday, shall be given. Notice may bo given by any company having an agency in Ontario by registered letter addressed to the assured at his last post office address notified to the company, and where no address notified, then to the post office of tho agency from which the application was received, aiul where such notice is by letter, then seven clays from the arrival at any post office in Ontario shall be deemed good notice : Ami the policy m'l.f.i.l.— y il r 130 FIRE INSURANCE LAW IN ONTARIO. Waivor of couditiun. shall cease after such tender and notice aforesaid, and the expira- tion of the five or seven days, as the case may he. (n) The insurance, if for cash, may also he terminated by the assured by giving written notice to that effect to the company or its authorized agent, in which case the company may retain the customary short rate for the time the insurance has been in force, and shall repay to the assured the balance of the premium paid. (20) No condition of the policy, either in whole or in part, shall be deemed to have been waived by the company, unless the waiver is clearly expressed in writing, signed by an agent of the company. Offlccrs assr.m- (21) A.n officer or agent of the company, who assumes on '"« *" "B*"''^ '" behalf of the company to enter into any written agreement relat- doumcd agents* ing to any matter connected with the insurance, shall be deemed prima facie to be the agent of the company for the purpose. ActionB to bo (22) Every action or proceeding against the company for the one^TOar. recovery of any claim under or by virtue of this policy, shall be absolutely barred, unless commenced within the term of one year next after the loss or damage occurs. Wliat consti- tutes written notice. (23) Any written notice to a company for any purpose of the statutory conditions, where the mode thereof is not expressly pro- vided, may be by letter delivered at the head office of the company in Ontario, or by registered post letter addressed to the company, its manager or agent, at such head office, or by such written notice given in any other manner to an authorized agent of the company. V.iriatons how 109. If the insurer desires to vary the said conditions, or to indicafed. omit any of them, or to add new conditions, there shall be added on the instrument of contract containing the printed statutory conditions words to the following effect, printed in conspicuous type and in ink of a different colour, Variations in Conditions. " This policy is issued on the above Statutory Conditions with the following variations and additions : THE ONTARIO INSURANCE ACT, 1807. 131 kditions " These variations (or as the case may he) are by virtue of the Ontario Statute in that behalf, in force so far as, by the Court or Judfje before whom a question is tried rehitin« thereto, they shall be held to be just and reasonable to be exacted by the company." 170. No such variation, addition or omission, shall, unless VariatioiiH not the same is distinctly indicated and set forth in the manner or to Ji"ariy*^ "" '^"^ the effect aforesaid, be legal and binding on the assured ; and no indicated, question shall be considered as to whether any such variation, addition or omission is, under the circumstances, just and reason- able, but on the contrary, the policy shall, as against the insurer, be subject to the statutory conditions only, unless the variations, additions or omissions are distinctly indicated and set forth in the manner or to the effect aforesaid. Provided it shall be optional with the insurers to pay or Optional with allow claims which are void under the 3rd, the 4th or the 8th '"sunTs to pay claims void Statutory Condition, in case the said insurers think fit to waive under certain the objections mentioned in the said conditions. conditions. 171. In case a policy is entered into or renewed containing poUpy pont^i^. or including any condition other than or diilerent from the con- i"R **'•""■ than - 1 . . statutory ditions set forth in section 168 of this Act, if the said condition conditions, so contained or included is held, by the Court or Judce, before whom a question relating thereto is tried, to be not just and reasonable, such condition shall bo null &n(\ void. 17/8 — (1) "Where, by reason of necessity, accident or mistake, if ,iuo proof of the conditions of any contract of fire insurance on property in I?"" ""f Riyen this Province as to the proof to be given to the insurance com- di'ut, etc., orob- pany after the occurrence of a fire have not been strictly com-uu.rpto''"riiin(ie plied with ; or where after a statement or proof of loss has been "" "*•«'«■ Kroundi '■ ' '■ tiinn non-com- given in good faith by or on behalf of the assured, in pursuance piiance witii of any proviso or condition of such contract, the company, '^°"' '"°°''' through its agent or otherwise, objects to tlie loss upon other grounds than for imperfect compliance with such conditions, or does not within a reasonable time after receiving such statement or proof notify the assured in writing that such statement or proof is objected to, and what are the particulars in which the ! or, if full com- plianco adjudged inequitable. 132 FIllB INSURANCE LAW IN ONTARIO. same is alleged to be defective, and so from time to time ; or where for any other reason, the Court or Judge before whom a question relating to such insurance is tried or enquired into, considers it inequitable that the insurance should be deemed void or forfeited by reason of imperfect compliance with such condi- tions — no objection to the sufficiency of such statement or proof or amended or supplemental statement or proof (as the case may be) shall in any of such cases be allowed as a discharge of the liability of the company on such contract of insurance wherever entered into. Allowance for (2) If in any action or proceeding upon a contract of fire costs occiiBiuned . ,, j •■ • i • .•«. • i i- ))y default of insurance, the assured, bemg plamtiff in such action or proceed- ing, has in the opinion of the Court or Judge, wilfully neglected or unreasonably refused to furnish necessary information respect- ing the property for which the insurance money is claimed, and if as a consequence of such neglect or refusal, the defendant company has been at expense in obtaining information or evi- dence the Court or Judge may, in disposing of costs, take into consideration the expense so incurred by the defendant company. In above cases liability and polii-y not vacated. plaintiff. Appeal. 173. A decision of a Court or Judge under this Act shall be subject to review or appeal to the same extent as a decision by such Court or Judge in other cases. INVESTIGATION OF FIBES. juBticeaof the 1'7'i. — (1) Any Justice of the Peace, or any one having \a.vf- Bvvearand"''""^^"! *'itl^o"*'y to **'^"^''^is*®'^ ^" ^^^^ ^^ affirmation in any legal examine wit- proceeding, may examine on oath or solemn affirmation any ne8Bi'8ri«arding* " "' v.»i-i.- -j xi- loss. party or person who comes before him to give evidence touching any loss by fire in which any fire insurance company is interested, and may administer any oath or affirmation required under this Act. (2) On receiving a written request from any officer or agent of an insurance company with security for the expenses of an investigation, any Justice of the Peace may at once proceed to hold an investigation as to the origin or cause of any fire that has happened within his county or district, and as to the persons, if any, profiting thereby. May liold spcciiil investi- gation on request THE ONTARIO INSURANCE ACT, 1897. 133 iR law- legal ion any ucliing rested, er this (3) The Justice of the Peace shall have power to send for Powers, persons and papers, and to examine all persons that appear before him on oath or solemn affirmation ; and he shall keep a record of all such proceedings, and of all matters received in evidence before him. (4) Any director or officer of the insurance company, or the Partips to iiio assured, or any person claiming under the policy, or any person 'i^citigation. prejudicially affected by any of the evidence so far received, shall have the right to attend personally and by counsel the investiga- tions or proceedings as party thereto, and to call, examine, cross- examine or reexamine witnesses, as the case may be. Interested per- ■ons not to act as magifltrato or coroner; nor record evidence. Application of 8ul)-8ection8 4 and 5. Powers of provincial coroners, etc. (5) No director or officer of the insurance company, nor any other person interested as hereinbefore mentioned, shall act as magistrate or coroner in any fire investigation ; nor shall he act for the magistrate or coroner as clerk, reporter or otherwise, iu taking down or recording the depositions or evidence. (6) The two next preceding sub-sections shall equally apply to all fire investigations held by coroners or Provincial Coroners under any law of the Province. (7) For purposes of any investigation held under this last section the Provincial Coroner or a Justice of the Peace may sum- mon and bring before him any person whom he deems capable of giving information or evidence touching or concerning the fire, and may examine such persons on oath ; and he shall reduce such examinations to writing, and return the same to the clerk of the peace for the district or county within which they have been taken, and the fees payable to a Justice of the Peace in respect of such investigation shall be as herein enacted for a Provincial Coroner. 175.— (1) It shall be lawful for the Lieutenant-Governor in Appointment oi Council to appoint from time to time, under the Great Seal, provincial Provincial Coroners, each of whom shall be by virtue of his hold fire appointment both a coroner and a Justice of tlie Peace for every "'veatigations. county and part of Ontario, for purposes of holding fire investiga- tions. ■ 1! 134 yi-cB of pro- vincial coronors. FIRE INSURANCE LAW IN ONTARIO. (2) The fees payable to a Provincial Coroner shall be as enacted by section 7 of chapter 217 of the Revised Statutes of Ontario, 1887. (3) Before any Provincial Coroner shall enter on any investi- gation under this Act, he shall obtain the consent in writin(4 of Assent of Attorney- General or CountyAttomey either the Attorney-General or County Attorney for the county wherein the investigation is proposed to be held. Incorporation of provisions with prior enact- ments. CompcHing attendance of witnesses, the production of documents and tlie giving of evidence. (4) This section shall be construed as one with chapters 80, 83 and 217 of the Revised Statutes of Ontario, 1887. (5) For purposes of any investigation under section 174 of this Act the Justice of the Peace or the Provincial Coroner shall have the same power and authority to require and compel the attendance of witnesses and the production of documents and the giving of evidence as a Justice of the Peace has under articles 580, 581, 582, 583, 584 and 585 of the Criminal Code, 1892. h' INDEX. ABANDONMENT— when property partially damaged, i)0, 125. ACCIDENT— loss through, 9, 124, 131. proofs defective through, 85. ACTION— by mort:?agee, 81. when arbitration pending, 8S. when premature, 91, 102. consolidation of more than one, 92, 104, 123. against wrong-doer, 96. when to be commenced, 102, 130. parties to, 103. when infants concerned, 104, 123. ADJUSTMENT OF LOSS— does not mean that money payable, 92. (See also under Loss.) AGENT— information obtained by, 25. duty as to premiums, 35, 77. acting for two companies, 72. enumerated, 75. notice to, 75, 76. persons deemed, 76, 130. when company deny authority of, 76. cannot waive conditions, 76. nppomtment of local agents, 77. '^H m W I !E 136 INDEX. AGEWr— Continued. power of, 77. insuring in their own favour, 77. acting for both parties, 78. mistakes of, 78. duty to his company, 79. proof by agent of assured, 84, 128. service of garnishee order on, 92. ALIENATION— of property insured, 63-G6, 1.2.'5. APPEAL— in actions affecting mutual companies, 104, 120. in actions generally, 132. APPLICATION— form of, and how made, 16. statements in, how construed, 17, 122. considered part of contract, 24, 122. endorsements on, 2(). if company asks no questions, 27. when prepared by company's agent, 78. APPORTIONMENT— when insurance in other companies, 73, 126. when several claim insurance money, 92. APPRAISER - cannot waive conditions, .')7, 72. of company, 80. joint appraisement, 81. ARBITRATION— to determine amount of loss, 87, 129. laws applicable to, 87. when award conclusive, 88. arbitrators must be indifferent, 88. when action commenced, 88. costs of, 88. INDEX. ARSON— fire by design, 10. Statate to prevent, 93. ARTICLES OF VERTU— when insurable, 7, 12C. ASHES— when fire caused by, 10, 12G. ASSIGNEE— of policy, 62. ASSIGNMENT— of policy, 62, of property insured, 63 60, 125. of part of property, 66. ASSURED— meaninf{ of, 2, 112. wilful act by, 10. information from, 17. must prevent destruction when he can, 55. duty after loss, 80, 123, 128. immediate notice of loss, 81, 123. must make proof of loss, 84, 127. may appoint arbitrator, 87. when he collects loss from wrong-doer, 96. ATTACHMENT— of insurance moneys, 92, AVERAGE— conditions of, 72. 187 BENZINE— when stored in building insured, 11, 127. BOOKS OF ACCOUNT— not insurable, 7, 126. to be produced after loss, 83, 128. 138 INDEX. BRITISH COLUMBIA— Uniform Conditions Act, G. BUILDINGS— what covered by, 7, 124. BULLION— when insurable, 7, 12G. BURNING FLUID— when stored in building insured, 11, 127. CAMPHENE— when stored in building insured, 11, 127. CANCELLATION— of policy, 35, 43, 45, 59, 115, 125. {See also under Termination of Contract.) CARPENTERS— house being repaired by, 11, 127. CASH MUTUAL COMPANY— meaning of, 112. powers of, 120. {See also under Mutual Insurance.) CERTIFICATE— of loss, etc., by magistrate, 83, 128. CESTUI QUE TRUST— insurable interest of, 14. CHANGE MATERIAL TO RISK— effect of, 69, 125. meaning of word " change," 60. company estopped from setting up, GO. " material change " defined, 60. vacancy, 61. more hazardous business, 61. watchman, 61. when policy assigned, 62. when property assigned, 63. INDEX. CHIMNEYS— loss from defective, 10, 126. CIVIL COMMOTION- loss through, 10, 126. CLAIM— declaration that, true, 82. whole, void when fraud as to part, 87. when payable, 91, 113. consequences if company fail to pay, 113, 114. (See also under Loss.) CLOCKS- when insurable, 7, 126. COAL GAS— in building insured, 9, 127. COAL OIL— when stored in a building insured, 11, 127. CO-INSUHER— seventy-five per cent, clause, 72. COMMISSIONER FOR TAKING AFFIDAVITS- certificate from, after loss, 83, 128. COMPANIES FOR INSURANCE— Stock Companies, 2. Mutual Companies, 3. Companies operating in Ontario, 4. their own enquiries, 26. to be notified of loss, 80, 81, 123. right to enter after loss, 80, 123. duty when proofs defective, 85. may appoint arbitrator, 87. position of, when loss paid, 103. CONCI LMENT- niaterial information, 19, 125. 189 140 INDEX. %i\ CONCURRENT INSURANCE— when assured must maintain, 72. ratable distribution, 73, 126. CONDITIONS ON POLICY— object ^f, 48, 56. statutory conditions, 48. must be set out, 49. 121. when divisible, .'io. when implied, 55. memo, as to countersigning, 55. how construed, 56. waiver of, 57, 76. as to nroofs, 80-94. as to proof, when no proofs required, 87. {See also Statutory ConditiouH ) CONSTRUCTION OF POLICY- law to govern, 40. of conditions on, 56. to assist the assured, 107. CONTRACT— how evidenced, 36. form of, 36. amount of, 36. term of, 38, 120, 124. binding on company, 39. when dee.Tied to be made, 40. law to govern, 40. defined, 111. CONTRTBUTTON— hy company to loss from removal, 90. by assured under co-insurance clause, 72. CORONER— duty in fire investigations, 108-1 lU, 133-134. INDEX. COSTS- of arbitration, 88, 129. incurred by action of assured, 100, 132. COUNTY JUDGE— may appoint third arbitrator, 87, 129. COVENANT— in mortgage to insure, 100. CURIOSITIES— when insurable, 7, 126. DAMAGE— property to be secured from, 80. property partially damaged, 90, 125, 128. DESCRIPTION— if wrong, given, 18, 125. DESIGN— loss by, 10, 124. declaration after loss, 82, 128. DISCLOSURE OF MATERIAL FACTS- by the assured, 17, 125. failure to disclose, 19, 125. DIVISION COURTS— garnishment in, 92. service of garnishee order, 92. action on premium note, liYi, 119. appeals in, 104, 120. DOUBLE INSURANCE— in another company, 08, 120, J 27. DWELLING HOUSES- may be insured, 7, 124. when undergoing repairs, 11, 127. 141 ! II 142 INDEX. 5fr ELECTION TO RE-INSTATE— by company, 93, 94, 1*29. EMBERS— fire caused by, 10, 126. ENCUMBRANCES— should be disclosed, 20-22. are objectionable, 63. declaration as to, after loss, 82, 128. fraud in proofs as to, 87. ENDORSEMENT— on application, 26. ENTRY OF PREMISES— right of company to, 80, 123. ESTOPPEL— from setting up change in risk, 60. when subsequent insurance effected, 71. as to failure to furnish proofs, 86. EVIDENCE— as to proofs at trial, 85. as to fraud, 86. admissible at trial, 101-106. as to amount due on premium note, 10-1, 118. EXAMINATION— of risk by company, 26. of premises by company after loss, 80, 123. EXECUTION— when, may issue against Mutual Company, 107, 121. EXPLOSION— loss from, 9, 127. FALSE STATEMENT— in proofs of loss, 86, 128. FARM PRODUCE — may be insured, 7, 124. INDEX. FIRE — damage from, 9, 124. previous fires, 22 investigation of, 108-110. FIRE PROCESS— loss through, 10, 127. FIXTURES— covered by insurance on building, 7. FORFEITURE— company may waive, 57, 72. for changes material to the risk, r)!)-G7. from other insurance. 68-74. FRAUD— by assignor of policy, 27. in proofs of claim, 80, 128. FRESCOES— when insurable, 7, 120. FURNITURE— may be insured, 7, 124. GARNISHEE ORDER— when insurance moneys subject to, '.)2. when debtors' exemptions destroyed, 1)3. GASOLINE— when stored in a building, 11, 127. GOODS— generally, 7. locality of, 8. sold but not delivered, 88. damaged in removal, 90. GREAT BRITAIN— legislation in, 0. GUNPOWDER— damage from, 9. quantity which may be stored, U, 12, 127. 143 ^'h'-f 144 INDEX. HARDWAKE STORE— explosion in, 9. HAZARDOUS TRADE- carpeiiters, etc., 11. change to more, Gl. HEATING PROCESS— damage from, 10, 127. INCENDIARY DANGER— enquiry as to, 22. INDEMNITY— Insurance, contract of, 1. INFANT— when entitled to insurance money, 104, 12ii. INFLAMMABLE SUBSTANCES— enumerated, 11, 127. INFORMATION— from the assured, 17, 125. INQUEST ON FiHES— as to cause, 108. INSURABLE INTEREST— assured must have, 12-15. when policy renewed, 40. INSURANCE— defined, 1, 112. essential principle of, 2. origin of, 2. legislation in Ontario, 5. when refused by another company, 23. over-insurance, 68. prior insurance, 68. subsequent insurance, 69. on the cash plan, 112. WmW*^ ' INDEX. INSURANCE COMPANY— companies operating in Ontario, 4. its own enquiries, 26. {See also " Companies for Insurance.'') INSURER— meaning of, 2, 112. INSURRECTION— loss through, 10, 124, 126. INTEREST— jury may give, on amount of loss, 88. so may a referee, 88. INTERIM RECEIPT— defined, 37. subject to statutory conditions, 37. duration of, 37. who may sign, 38. INTERPLEADER— when money claimed by two, 91. INVASION— loss from, 10, 124, 126. INVESTIGATION OF FIRES— when allowed, 108-110, 132-134. INVOICES- to be furnished after loss, 83, 128. JEWELRY— when insurable, 7, 120. JOINERS— when working in a house, 11, 127. JURY— question of materiality for, 17, 100, 122. asBured's right to, 106. M'L.Kf.L.— 10 145 i: 1:1 I 146 ^■ INDEX. JUSTICE OF THE PEACE— may take affidavits, 8-1, 132. duty in fire investigations, 108 110, 132 134. LAW TO GOVERN— policies of insurance, 40, 121. LEGISLATION— in Ontario, o. in Manitoba, 5. in British Columbia, 5. in Great Britain, 5. LIENS— premium note does not create, 34, 120. on property to be disclosed, 82, 128. LIGHTNING— loss from, 9, 124, 127. LIMITATION— of action on policy, 102, 130. LIVE STOCK— may be insured, 7, 124. LOCALITY— insurance has rej^ard to, 8. proof of, after loss, 8, 82, 127. LOSS— when member in arrear, 33. duty of assured after, 80, 123. immediate notice of, 81, 127. particulars of, 81, 127. certificate of ma^^istrate as to, 83, 128. who may make proofs, 84, 128. amount of, how settled, 87, 12U. decisions on an}ouRt of, 88. premium note retained, 89, 119. in removal, 90, 124, 100 K. S. O. (1887) c. 143, s. 5 35 R. S. O. (1887) c. 167, s. 24 30 R. S. O. (1887) c. 217, as. 1, 2, 3, 8 109 58 Vict. (1895) c. 12, s. 120 89 GO Vict. (1897) c. 36 6, 49, 111 STATUTORY CONDITIONS- when enacted, 6. orif^jin of, 48. part of every contract, 49, 124. must be set out, 49, 124. hovT to vary, 51, 130. Province has power to enact, 52. binding aj^ainst both parties, 53. apply to all policies on (»oods in Ontario, 53. when floods out of Province, 54. re-insurance contracts, 54. VH' iations held void, o4. wlien variation reasonable, 54. how construed, 56. waiver of, 57. notice relating,' to, 58, 113, ]8(). set out in full, 125. STATUTORY DECLARATION - ay to other insurance, 74, 128. with particulars of loss, 82, 128. 156 INDEX. STEAM ENGINE— use of, on farm, 60. STOCK LISTS— to be furnished after loss, 83, 128. STORES— may be insured, 7, 124. STOVES— damage from, unsafe, 10, 127. unsafe, pipes, 10, 127. SUBROGATION— defined, 9.5. mortgage clause, 97. SUBSEQUENT INSURANCE — company's assent to, 09, 12t). notice to company of, 70, 12'j. by a third party, 70. meaning of, 71. company estopped, 71. notice to agent, 72. company may waive forfeiture for, 72. proof of, after loss, 7i. SURRENDER OF POLICY— to be cancelled, 3."), 43, 45, 59, 11."), 125. SURVEY OF PREMISES— by company when insurance effected, 2."), 20. after loss, by company and assured, 80, 81. TENANT FOR LIFE— insurable interest of, 1.'). TERMINATION OF CONTRACT— before maturity, 35, 129. by company, 43, 129. INDEX. TERMINATION OF COHTRKCT—Continrud. by the assured, 45, lir>, 129, 130. not by creditor of the assured, 45. for change material to the risk, 59, 125. THIRD PARTY'S PROPERTY— loss in respect of, 13, 12G. TIME— during which insurance in force, 38, 120, 124. of delivery of proofs, Rl, 85. after which loss payable, 91, 113, 129. TT^. "^iE DEEDS— not insurable, 7, 126. TITLE TO PROPERTY INSURED— when assured bound to disclose, 13. importance of, to company, 19-22, when no inquiry by company, 21. change of, 63, 125. fraud in proofs as to, 87. TRANSFER OF INSURANCE— by the assured, 62. TRINKETS— when insurable, 7, 126. TRUSTEE— when assured, for company, 95. UNDEli WRITER— meaning of, 2, UNIFORM CONDITIONS ACT— wlien enacted, 0. reason for, 48. 157 I ii lii lij! I Ii AI ! t , ■I ,.! I !S >'-il ill 158 INDEX. USURPED POWER— loss through, 10, 126. VACANCY— change material to risk, Gl. VALUATION OF LOSS— how made, 87, 129. VALUE OF PROPERTY— of importance to company, 23. how settled after loss, 87, 129. VENDOR— insurable interest of, 13. WAIVER— of conditions, r)7, 130. subsequent insurance, 72. by af^ents, 76. of proofs, 86. WAR— loss through, 10, 124, 126. WAREHOUSE RECEIPTS— to be furnished after loss, 83, 128. WARRANTY— when statement considered a, 25. WATCHES— when insurable, 7, 126. WATCHMAN— employment of, 62. WITNESS- at fire investigation, 109, 134. INDEX. WORKMEN— when employed on insured building, 11, 127, WORKS OF ART— when insurable, 7, 126. WRITTEN NOTICE— how to be given, 08, 113, 127. 130, WilONG-DOER— liability of, for loss, 95, 90. parties in action against, 90, 103. 159 %■ I 81, I l;i iif i^ 1 I I : i M- ■ ■}. p? Incorporated by Royal Charter and Empowered by Special Act of Parliament. " "-J . . HATIOHAL . . OF IRELAND. Established 1822. HEAD OFFICE, 3 College Green, Dublin. CAPITAL £1,000.000 INCOME (exceeds) 300,000 INVESTMENT FUNDS (exceed) 5UO,000 CANADIAN HEAD OFFICE s No. 1735 Notre Dame Street, Montreal. MATTHEW C. HINSHAW, : : Chief Agent. ONTARIO BRANCH : Offices — 1 6 Wellington St. East, Toronto. J. H. EWART, General Agent. Correspondence is invited as to Agencies at unrepresented points in Ontario. «™"lil 1 ^H !:i^^'i 11 fill! ESTABUSHED A.D. I720. ) ' II OO^^K Ii 1 i; 1 il Total Funds, - - $19,000,000 IP > I 1 i : ) i t , ' I ' ) 1 i 1 THE<:;==^ if-' 1 , London Assurance 1 1 Ii 1 1 • 1 i = Corporation (fire). f \ 0-0-0 Head Office for Canada: '' !' 1762 Notre Dame Street, MONTREAL. ; ' i •: > i I ■ I 1 i E. A. LILLY, Manager. ' INCORPORATED 1833. BRITISH AMERICA . - ■ Ii Ii '^ Ii: , I ( • ; , 1 I1 1^ ii' i : I f i i ASSURANCE COMPANY , - riRE AND MARINE - - HEAD OFFICE, . . - - TORONTO. '■ Cash Capital - - - - $ 750,000 ■1 ■, 1 1 Total Assets Over .... 1,450,000 "J Losses Paid Since Organization - 14,000,000 1 1 i:: ; HON. aEO. A. COX, J. J. EENN7, ' Ii 1 1 President. Vice-President. ^ P 1 P. H. SIMS, • SmGRETAitr. V' ■■' ■ ; 1 1 ' f INCORPORATED 1851 J WESTERN ASSURANCE CO. . . . FIRE AND MARINE . . . Head Office, - - - TORONTO. Subscribed Capifai Paid-up Capital Assets Over - Annual Income $2,000,000 1,000,000 2,320,000 2,300,000 HON. GEO. A. COX, President. J. J. KENNY. Vice-President THE TRUST & LOAN COMPANY OP CIINflDfl. ESTABLISHED 1851. Subscribed Capital, - - £1,500,000 Paid-up Capital, - - 325,000 Reserve Fund, - - 189,325 HEAD OFFICE- 7 Great Winchester Street, LONDON, ENO. OFFICES IN GANADA- Toronto Street, TORONTO. St. James Street, MONTREAL. Main Street, WINNIPEG. Money advanced at lowest current rates on the riecur- ity of improved farms and productive city property. WM. B. BRIDGEMAN-SIMPSON, RICHARD J. EVANS, Commisaio Iters . Ill ^ !; V |i ''lid 1 m-u 'i I' ; ! iV i: '. i ■1 !■! • I i I THE QUEEN CITY FIRE INSURANCE COMPANY. ESTABLISHED 187t. HEAD OFFICE— Queen City Chambersi Church St., Toronto. . . DIRECTORS . . Hugh Scott, President. Thos. Walmslev, Vice-President. Hon. Justick Maclennav. John D. Chii'MAN. .1. (t. Scorr, Master of Titles. W. Ihei.and Scott, Asst. Secretary. Ratio of Surplus Assets alone to amount at Risk 3.58 per cent. THE HAND-IN -HAND INSURANCE CO. FIRE AND PLATE GLASS. FOUNDED 1873. HEAD OFFICE— 32 Church Street, Toronto. L. W. Smith, Q.C., D.C.L., President. Scott & Walmsley, Underwriters and Managers. Joseph Walmsley, Asst. Secretary. Losses Equitalaly Adjusted and Promptly ?aid. THE MILLERS and MANT'RS INS. GO. ESTABLISHED 1885. HEAD OFFICE— 32 Church Street, Toronto. James Goldie, President. J. L. Spink, Vice-President. Thos. Walmslky, Treasurer. Hugh Scoti', Mgr. and Secy. Adam Austin, Inspectob. Assurers with this Company have made a saving of $108,000.00. THE FIRE INSURANCE EXCHANGE CORPORATION. ESTABUSHED 1386. HEAD OFFICE, Queen City Chambers, Toronto Frederick Wyld, President. R. W. Elliot, Vice-President. Scott & Walmsley, Managers and Underwriters. R»te» Fixed with an Intelligent Estimate of the Hazard Assumed. BEATTY, BLACKSTOCK, NESBITT, CHADWICK (& EIDDELL, Barristers, Solicitors, Notarie», etc. Offices : Bask of Toronto, Cor. of Wellington and Church Streets, Toronto, Ontario. W. H. Beatty. Thoa. Gibbs Blackstock, George Tate Black- stock, Q.C., E. M. Chadwick, Wallace Nesbitt, W. R. Riddell, Thos. Percy Gait, W. H. Brouae, David Fasken, A. Monro Grier, H. Armstrong, II. McKay, C. W. Beatty. McCAKTHY, OSLEE, HOSKIN (& CREELMAN, Barristers, Solicitors, etc. Freehold Buildings, Victoria Street, Toronto. D'Alton McCarthy, Q.C., B. B. Osier, Q.C., John Hoskin, Q.C., LL.D., Adam R. Creelman, Q.C., F W. Harcourt, W. B. Raymond, W. M. Douglas, H. S. Osier, Leighton G. McCarthy. MOWAT, LANG'TON, MOWAT & MACLENNAN, Barristers, Solicitors, Notarien, etc. York Chambers, 9 Toronto Street, Toronto. Sir Oliver Mowat, Q.C. H. M. Mowat Thomas Langton, Q.C. R. J. Maclennan. WATSON, SMOKE & MASTEN, Barristers, Solicitors, Notaries, etc. 9 Toronto Street, Toronto. Cable Address " Wathorne." George H. Watson, Q.C. Samuel C. Smoke C. A. Masten J. Grayson Smith. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 2,2 *- IIIIIM 1.8 1.25 1.4 1.6 .4 6" — ». <^ ^ /a o 7 V //, fliotographic Sciences Corporation 23 WEST MAIN STRUT WEBSTER, NY. 145B0 (716) 872-4503 v^,^ v^. %? (/. The. N$URANCEIiNDPlllAilCE[niCLE A thoroughly Reliable, Impartial and Independent Exponent of Insurance, Finance and Banking | Issued 1st and 15th of Each Month. OFFICE OF PUBLICATION : 151 St. James Street, Montreal. R. WILSON SMITH, Proprietor. Government, Municipal and other Investment Securities suitable for Trust Estates and Permanent Investment, Bought and Sold. Bonds Suitable for Deposit with the Dominon Government a Specialty. R. WILSON SMITH, 157 Sr. Jammb STnmmr, f « • ' MoNTmmAL. THE TORONTO est ablished m 2. GENERAL TRUSTS CAPITAL - $1,000,000 rjOMPANY RESERVE FUND - 250,000 ^^'Vll Ml>l I S. £. COR. YONGE & COLBORNE STS. Toronto, - - Ont. . . DIRECTORS. . John Hoskiii, Q.C., LL.D., E. A. Meredith, LL.D., ) W. H. Beatty, f J. W. Langmuir, • Managing Director. President. Vice-Presidents. Samuel Alcorn, Hon. KnwAKD Blake, W. R. Bkock, Hon. Gko. A. Cox, B. HoMKK Dixon, .Ta.s. J. For, C^.C, George Gooderham, H. S. Rowland, Hon. R'i). Harcoitrt, ./Emiliu.s Irvin(;, (^.C, Robert Jakkrav, A. B. Lke, Sir Frank Smith, T. SlTHKRL'l) STAVNER, J. G. Scott, Q.C. Under the api)rnvul of the Ontario Government, tlie Coin- l)any is accepted by the Hi^h Court of Justice as a Trusts Company, and from its organisation has been employed by the Court for the investment of Court Funds. The C(mipany acts as Executor, Administrator, Receiver, Committee of Lunatics, Guardian of Children, Assignee of Estates, Agent, etc., and as Trustees Undar Deeds, WlUs or Court Appointments or Sub- stitutions; also as Agents for Executors, Trustees and others, thus relieving tliem from onerous and disagreeable duties. It Obviates the need of Security for Administration. Mstate.) Promptly and Economically Managed. Money to loan at lowest current rates for long or short periods, and on most favorable terms on improved Farm and City Proiierties. J. W. Langmuir, Managing Director. The TRUSTS CORPORATION OF ONTARIO. Kstablished 1889. Authorized Capital, Capital Subscribed, Capital Paid up, $1,000,000 1,000,000 200,000 Offices and Safe Deposit Vaults Bank of Commerce Building, 19-21 King St., Toronto. President, Vice -Fbesiuemts, HON. J. C. AIKINS, P.C. (HON. SIR R. J. CARTWRIGHT (HON. S.C.WOOD. This Company acts as Administrator in tlie case of intestacy, or with will annexed, Executor, Trustee, Re- ceiver, Committee of Lunatic, Guardian, Liquidator, Assignee, &o., &c. ; also as Agent for the above offices. All manner of trusts accepted ; Money Invested, Estates Managed; Rents, Incomes, Ac, collected; Uonds, Deben- tures, &o., issued and countersigned. Deposit Safes to rent, all sizes. Parcels received for safe custody. Solicitors placing business with the Corporation are retained in the professional care of same. A. E. PLUMMER, ilanager. The TRUSTS AND GUARANTEE GO. Limited. TORONTO. cj^:E>xrcj^Xj S500,ooo. rpHE Company has authority, under it« Charter, The Trusts Companies -*■ Act, 1897, and the order of the Lieutenant-Governor in Council, to perform the duties of a Trust Company, and is accepted l)y all the Courts of the Province to act ns Executor, AdminJRtrator, Trustee, Conmiittee of Lunatic, Guardian, Receiver, Avsignee and Liquidator and agents of such persons; also. As Registrar of stock of Joint Stock and Mining Companies ; manages estates of every description. Trust and other monies left with the Company are carefully invested and kept separato from the assets of the Comi>any. Wills appointing the Company as Executor and Trustee are safely kept in fire-proof vaults free of charge. Solicitors bringing business to the Company are retained in connection with such business. Correspondence invited. J. R. STRATTON, M.P.P., President. T. P. COFFEE, Manager. WESTERN CANIIDII LOAN AND SAVINGS COMPANY. INCORPORATED 1863. Subscribed Capital, - - - - Paid-up Capital, Reserve Fund, $3,000,000 1,000,000 770,000 Offices: No. 76 CHURCH ST., TORONTO, and Main St.. WINNIPEG. Man. DIRKCTORS: Hon. Qeo. W. Allan, President ; • Geo. Qooderham, Vlce-Pres. TJiomas H. Lee, Alfred Oooderham, Qeo. W. Lewis, Oeorge F. Oalt. WALTER S. LEE, - - Hanaging Director DEPOSITS received and interest allowed thereon— com- pounded half-yearly. Debentures i.s.sued for terms of 2 to 5 years, interest paid half-yearly, Trustees are emjKjwered to invest in these securities. Loans granted on Improved Farms and Productive City Profjerty. (CENTRAL LOAN and SAVINGS CANADA COMPANY Office— 26 King St. East, Toronto. Capital Subscribed - - $2,500,000. DEPOSITS RECEIVED. DEBENTURES l&SUEO. IntersBt Allowed. Interest Coupons Attached. MONEY TO LOAN AT LOWEST RATES. . . . DIRECTORS : . . Hon. Geo. A. Cox, President. Richard Hall, Esq.. Vice-President. Hon. T. W. Taylor, Robt. Jakfray, Wm. Mackenzie, J. J. Kenny, Rev. John Potts, J. H. Houhher, E. 8. Vindin, F. C. Taylor, A. A. Cox. For further infonniition apply to F. G. COX, Manager. E. R. WOOL , Secretary. The NORTH BRITISH C HJUDHIJ IHV ESTMEHT CO, Limited CAPITAL SUBSCRIBED, £500,000 M()\PV TA TO&M ^^ I>oweat Onrrent Bataa on the ae- lul/i^L 1 A V lyvan onrity ot Improved Farms and Frodno- tive City and Town Froperty. M4»RTr in 4'»nii«iii tiint receivt'H its reiiortH ov4'r itH own ** Tlflicr." By this service it ^ets the Ijatest Market Reports from Londou, Liverpoo', Antwerp, Kerliii, I'arin, ContinnouH Qtiotatious from ChicRKo Hoard of Trade ditriiit; the dxi'.y Ke'-sioiis, bpRJdes regular reports at short intervals from New York Stock and Produce Ex- change, etc., etc., etc. IT ALUM TO BK ALWAVM KELIABLK. . . . It is the most thorout/hli/ read Newspaper in Canada. . . luformation and rates cheerfully furnished. THE GLOBE, Toronto, canada. MONEY AND RISKS \ Ai«i> THE BUDGET. A Review of Insurance, Financial and Commercial Opinion. Published monthly. wwwwi'yyyyvtga^y Wm. S. Milne, Editor and Manager, 26 dt 28 ADELAIDE ST. WEST, TORGNrO, CAN. THE. ECONOMIST. Insurance, Banking, Mining, Industries, Trade, Commerce. Canada's leading Insurance and Financial Journal. Subscription $2.00 per year. Write for sample copies. •••••••• The ECONOMIST PRIIITIIIG & PUBLISHING Company Of Toronto, Limited. Office— STOCK Exchange Building, 241 King St. East, Toronto, Canada. Wm. Sanderson, M.A., President and Editor. f ATLAS I ASSURANCE :•: COMPANY. Founded a.d, laos. Capital Annual Income Assets amount to Losses Paid exceed $ 6,000,000 2,825.000 10,800,000 65.000,000 The Company solicits applications from Loan and Investment Companies, Law Agents and others in a position to influence business. » ♦ • For Prospectus and other particulars apply to IVIATTHEW C. HINSHAW, Branch Manager for Canada. 1735 NOTRE DAME ST. . . MONTREAL.