It is only in the event of the underwriter refusing to pay on a loss, that the broker drops out and the assured sues the underwriter direct.
He is employed by the person who has an interest to insure, pays the premiums to the underwriter, takes up the policy, and receives from the underwriter payment in the event of a loss under the policy.
And yet in an ordinary policy of insurance there is no express provision requiring the underwriter to indemnify the assured against this liability.
Another view is that the underwriter impliedly undertakes to repay sums which the law may require the assured to pay towards averting losses which would, by the contract, fall upon the underwriter.
The explanation seems to be that the practice of the underwriter to pay the contribution has been so uniform, and his liability has been so fully recognized, that express provisions were needless.
I read them over again, and stared at the portrait of Underwriter Carmody that was the frontispiece of the handbook.
But it would have meant deep trouble for me, if it hadn't been for the intercession of my wife's remote relative, Chief Underwriter Defoe.
We never considered having an Underwriter lead a revolution from outside," he whispered to us.
I owed a considerable debt of gratitude to my ex-remote-in-law, Chief Underwriter Defoe.
Just settling down to a couple of drinks with Susan, and they phoned me to say Chief Underwriter Defoe is on my doorstep!
Well, then, what the underwriter is supposed to do is to decide, from the kind of risk he is asked to insure, how much the Company can write, and still not be liable for a greater loss than five thousand dollars in any ordinary fire.
I wonder, too," theunderwriter agreed, with amusement.
Mr. Wintermuth frankly gave to his young underwriter the proper share of credit for the results that had been brought about.
Now, the fire underwriter has to pass upon the danger of every risk whose insurance is offered to his company.
He exercises his best judgment, but the home office underwriter is the court of last resort.
He therefore goes to a broker who knows the habits of the place, and probably the very underwriter whose means or known predilections for certain forms of investment will make him desirous of taking the risk.
The underwriter who had received the letter, communicated it to the other insurers; and when a claim was made by the gamblers, they saw that they had been duped by the Yorkshire squire, although at the fearful price of self-murder.
On valid abandonment the underwriter adopts the interest of the insured in the subject insured, or what remains of it, and all incidental proprietary rights, e.
From the moment it occurs, even though she subsequently return to her proper course without loss or injury, the underwriter may avoid his contract; but the mere intention to deviate is immaterial.
The refusal of abandonment by the underwriter does not prejudice the assured's rights.
Failure on the part of the insured to fulfil a warranty literally entitles the underwriter to avoid his contract as from the moment of breach,[4] but it does not limit his obligation up to that moment.
The party originally incurring a general average sacrifice may recover from his underwriter the whole loss without having enforced his right of contribution from the others concerned in the venture.
The payment of a partial loss gives the underwriter a similar subrogation but only in so far as the insured has been indemnified in accordance with law by such payment for the loss.
But it has not yet become general in Great Britain or America, although every writer of authority on the subject, and every practical underwriter of large experience, approves it.
If the delay springs from circumstances known to the underwriter at the time of conclusion of the contract, or if the underwriter then acquiesces in it, the implied condition is nullified.
Every representation of material fact made to an underwriter before conclusion of a contract by the insured or his agent must be true, or the underwriter may avoid the contract.
It is evident that in nearly all the particulars of any adventure insured by an underwriter he is entirely dependent upon the insured for correct information.
