Fidelity and Guaranty Insurance Decisions.

tion for insurance shall be deemed representations, and not warranties, and shall not prevent a recovery on the policy unless fraudulent or material, does not alter the vitiating effect of a materially false representation.

Where rep

False representation in application for fidelity bond. resentations in an application for an employe's fidelity bond were material and false, the bond was invalid, and whether they were fraudulent or not was immaterial.

Principal bound by representations of agent in obtaining bond and Surety. Where a bank seeks to avail itself of the benefit of the actions of its president in securing the execution of a bond guaranteeing the fidelity of its cashier, it must accept such actions subject to the president's representations inducing the execution of the contract by the surety.

A bank, in accepting its president's action in procur ing a bond guaranteeing the fidelity of its cashier, must be held to have assented to the conditions of the bond providing that the representations made by the president relative to the duties and accounts of the cashier should constitute an essential part and form the basis of the contract.

Case 552A. Southern Railway News Co. v. Fidelity & Casualty Co. of N. Y., 26 R. 1217; 83 S. W. 620 (1904). O'Rear, J., reversing.

Defendant insured

Guaranty insurance-Liability and extent. plaintiff by a policy which indemnified plaintiff against liability for injuries to its employes for one year. held liable for an injury occurring during said year, although the liability was not reduced to judgment within said period.

Compromise made in good faith with reasonable prudence is evidence of actual loss under guaranty. The plaintiff notified the defend ant insurer that an injury had occurred covered under the guaranty policy issued by defendant. Held: That it was the duty of the insured to make the loss as small as it reasonably could, although the insurer did not avail itself of the provision in the policy allowing it to conduct the defense to the suit brought by the injured employe against the plaintiff; and compromise of such suit in good faith

Fidelity and Guaranty Insurance Decisions.

and with reasonable prudence is held to be evidence of the loss actually sustained, which the insurer must pay under the policy.

Limitation of liability-Costs and expenses defending suits. Where an employer's indemnity policy limits the recovery to be allowed on the death of a person, the costs and expenses incurred in defending suits which the insurer should have defended or settled and interest thereon can be recovered.

ABANDONMENT-

INDEX TO PART III.

DECISIONS.

Of insured vessel under marine policy. See Marine Insurance.
Of insurance contract. See Forfeiture and Avoidance of Policy.
Evidence that insured mailed check for past-due fire premium

CASE

125

competent to show he had not abandoned the contract.
Walls v. Home Ins. Co., 114 Ky. 611; 24 R. 1452; 71 S. W. 650. 497
Evidence of physical disability competent to show insured did
not abandon policy. Aetna Life Ins. Co. v. Hartley, 24 R.
57; 67 S. W. 19
Where policy and note provided that if note was not paid policy
should be void, failure to pay it was an abandonment of the
contract. Deppen v. So. Mut. Life Ins. Co., 8 R. 57........
Of Insurance System-If assessment life company abandons its
system of insurance, policyholder may rescind contract and
sue for premiums. Peoples' Mut. Ins. Fund v. Bricken,
92 Ky. 297; 13 R. 586; 17 S. W. 625
ABATEMENT-

Refusal of insured to submit to examination as to his loss by
fire, stipulated in policy, can not be pleaded in abatement
to an action on the policy. Scottish U. & N. Ins. Co. v.
Strain, 24 R. 958; 70 S. W. 274

Plea in abatement on ground that policy provides no action
shall commence until 30 days after proof of loss, can not
be heard after main issues are made. Am. Acc. Co. v.
Fidler's Admr., 18 R. 161; 35 S. W. 905; 36 S. W. 528
ABSENCE-
Where policy is silent on the subject, a wife is not bound to
search for her husband who has disappeared, or give com-
pany information on the subject. McAllister v. Conn. Mut.
Life Ins. Co., 78 Ky. 531 ....

29

.218

490

520

14

That beneficiary in policy on her husband's life did not give
company facts as to husband's disappearance is not proper
subject for an instruction. Id.

14

Where evidence showed waiver, it was proper to instruct that
policy was not avoided by going to foreign countries. Mut.
Ben. Life Ins. Co. v. Martin, 21 R. 1495; 55 S. W. 694 ...

109

ACCEPTANCE-

Acceptance of application for policy. See Contract II.
Acceptance of policy. See Contract III.

Demand, acceptance or retention of premiums as waiver of right
to forfeit or avoid policy. See Estoppel and Waiver Affect-
ing Right to Avoid and Forfeit Policy.

Acceptance by agent of note for first premium held binding
though application provided policy not in effect until pre-
mium actually paid. Nat. Life Ins. Co. v. Tweddell, 22 R.
881; 58 S. W. 699

ACCIDENT INSURANCE-See cases 510-533.

Causes of injury under accident policies. See Loss I. C.
Risks of occupation. See Loss I. C.

External, violent and accidental means of injury. See Loss I. C.
Intoxication contributing to risk. See Loss I. C.

110

ACCIDENT INSURANCE-Continued.

Negligence contributing to risk. See Loss I. C.

Voluntary exposure to danger. See Loss I. C.

Proximate cause. See Loss I. C.

Risks excepted. See Loss I. C.

(For Diseases, Poison, Car Window, etc., see specific heads, this
Index.)

Extent of loss. See Loss III. C.

Evidence held sufficient to support death by accident where in-
sured was injured by a fall, contracted fever and died.
Standard L. & A. Ins. Co. v. Thomas, 13 R. 593; 17 S.
W. 275

Where circumstances of insured's death indicate either acci-
dent or suicide, the presumption is against suicide. Union
C. & I. Co. v. Goddard, 25 R. 1035; 76 S. W. 832
Though insured had taken and applied for large flyer policies,
a finding that death was accidental and not suicide held
warranted Id.

Boarding train going at eight or ten miles an hour is voluntary
or unnecessary exposure to danger. Small v. Travelers'
Protective Assn., 118 Ga. 900; 63 L. R. A. 510.
Crossed-eyes-voluntary exposure. 28 L. R. A. 78
Hanging. 30 L. R. A. 206, 72 Miss. 333..

Gun-cleaning-voluntary exposure. 20 L. R. A. 765...

A pay-car held not to be in the meaning of an accident policy.
Travelers' Ins. Co. v. Austin, 116 Ga. 264; 59 L. R. A. 107..
The United States Supreme Court cases are collected in vol.
13, constituting Index to Rose & Sutherland's Notes on the
U. S. Rep., page 569....

Disease rendering effect of accident more serious. Horsfall v.
Pacific Mut. Life Ins. Co., 32 Wash. 132, 63 L. R. A. 425..
Visible external marks caused by dilation of the heart from
heavy lifting. Horsfall v. Pacific Mut. Life Ins. Co., 32 Wash.
132; 63 L. R. A. 425....

A man takes poison to scare his wife into giving him money.
Held policy not void for suicide. Courtemanche v. Supr.
Court of Independent Order of Forresters (Mich.) (anno-
tated) 64 L. R. A. 668

ACCIDENTAL MEANS-

Meaning of term in accident policy. See Loss I.
ACKNOWLEDGMENT-

Assignment of policy from husband to wife need not be ac-
knowledged. Steeley's Creditors v. Steeley, 23 R. 996; 64
S. W. 642

ACCRUAL OF ACTIONS-See Limitation of Actions and Time

to Sue.

ACTIONS ON POLICIES-

Actions on mutual benefit certificates. See Mutual Benefit and

Benevolent Insurance.

Amended pleadings. See Pleading and Practice.

Answer. See Pleading and Practice.

Benevolent associations-rights of members or order to sue.
See Mutual Benefit and Benevolent Insurance.
Conditions precedent. See Conditions Precedent.

Cross-petition. See Pleading and Practice.

Fraternal orders-right of members or order to sue. See Mutual
Benefit and Benevolent Insurance.

CASE

515

532

532

122