Glens Falls Insurance Co. v. Michael
Indiana Supreme Court · 1905-06-08 · cited 68×
This case involved a dispute over a fire insurance policy where the insurer claimed the policy was void because the insureds held only a life estate in the property rather than sole and unconditional ownership in fee simple, as required by the policy terms. The insureds admitted the title defect but argued that the insurer had waived any defense by issuing the policy without inquiry, accepting the premium, and not objecting until after the loss. The court decided in favor of the insureds, holding that the policy provisions rendered the contract voidable rather than void from the outset, and that the insurer's retention of the premium constituted an election to treat the policy as valid. The core reasoning was that the insurer was required to promptly elect to avoid the policy and return the premium upon learning of the title issue, but its failure to do so and its answers pleading void ab initio were insufficient.