O'Brien

This is an action upon a contract of fire insurance, and defendant is appellant, as is usual in that class of cases. One Peters was defendant’s local agent in the town of Reedly, Fresno county, and under his commission as agent he had no authority to enter into a contract of insurance. But he was appointed subagent “to receive proposals for insurance, and fix *229 rates of premium, and to receive money for policies and certificates of insurance.”

Upon July 2, 1892, plaintiff O’Brien made a written application to Peters, upon one of defendant’s blanks, for insurance upon his saloon, building, and fixtures. This application, accompanied by a letter from Peters, was deposited in the postoffice July 5th, addressed to defendant at San Francisco. The letter referred to the inclosed application, with the suggestion that the company should place the insurance, if it was deemed advisable. The plaintiff’s building was occupied as a liquor-saloon, and defendant did not take insurance upon saloons, and the agent, Peters, knew this fact. When the application was made the agent informed plaintiff that he was insured from that time. Upon July 4th, which was between the time of the making of the…