Harp v. Grangers' Mutual Fire Insurance

Robinson, J., delivered the opinion of the Court. The appellee! was incorporated on' the 24th of July, lSlfí, and on the Yth day of August following, application was made by the appellant for insurance on his house, the said application being subject to the approval of the Board of Directors. On the 30th day of August, the house was destroyed by fire, and on the 25th of September the application of the ³⁰⁹ appellant was rejected by the executive committee of the appellee, and this action of the committee was subsequently approved by the Board of Directors. This suit is brought by the appellant against the appellee, to recover damages for the loss sustained by the fire.

In support of the action it is contended, that it was the duty of the Company either to have accepted or to have rejected the application for insurance within a reasonable time; and if it failed to do so, and the plaintiff suffered loss in consequence of such negligence, the law will imply an acceptance of the application, and hold the company liable for the loss occasioned hy the fire. How far and under what circumstances an acceptance of an application for insurance may be implied from the neglect of a company to act upon it within a reasonable time, is a question not necessary to be decided in this case, for conceding the law to be as contended for by the appellant, without meaning however so to decide, the record fails to show any such negligence on the part of the company as to entitle the plaintiff to recover. The application was delivered to one of