Popular Law Library Putney volume 9

Cover Popular Law Library Putney volume 9
Popular Law Library Putney volume 9
Albert H Putney
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, 619.
Vol. IX. 14.
210 INSURANCE.
Court of Illinois said in discussing this ques- tion: "A suit to enforce the liability of an insurance company may be brought on the contract for insur- ance as- well as upon the policy. The real cause of action is the same in both the contract and policy. The measure of damages recoverable is the same, and the policy must be based on the contract of insurance, and can contain no element different therefrom. Where an application for insurance is presented to a
... company stating what is wanted, and the terms, and its officer or any agent having authority to issue a policy says one will be issued on that application, the minds of the parties have met in the execution of a contract and a contract for insurance has been con- summated. It is an oral contract. Though proposed in writing, the acceptance by parol and a promise to issue a policy thereon constitute an oral contract. Corporations authorized by their charters to make insurance and issue policies are not precluded from entering into parol contracts to effect the same object.

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