Palmer v. Continental Insurance Co.

The suit was brought on a policy of insurance to recover for loss by fire of part of the insured property. The judgment was for the plaintiffs. The appeal is from the judgment and from an order denying a new trial.

The policy was issued June 7, 1897, and purports to be “in consideration of twelve dollars paid, and the payment of installments, when due, as follows: Twelve dollars on the first day of June, 1898, 1899, 1900, 1901,” etc. The actual consideration consisted of two notes made by plaintiffs to defendant March 27, 1897—one for $48, payable in installments as above stated; the other for $12.65, payable on or before Octo *456 ber 1, 1897 (“being first payment for policy of insurance based upon application made this day,” etc.). In the mortgage occurs the following provision, following the agreement for insurance: “But it is expressly agreed that this company shall not be liable for any loss or damage that may occur to the property herein mentioned while any note or obligation, or part thereof, given for the premium, remains past due and unpaid.” And similar provisions are contained in each of the notes. The note for the “first payment” was overdue and unpaid at the time of…