AGREEMENT FOR INSURANCE. An agreement often made in short terms pre liminary to the filling out and delivery of a policy with specific stipulations.
Such an agreement, specifying the rate of premium, the subject, and risk, and amount to be insured, in general terms, and being assented to by the parties, is binding; Tyler v. Insurance Co., 4 Rob. (N. Y.) 151; Oliver v. Insurance Co., 2 Curt. 277, Fed. Cas. No. 10,498; Trustees of First Baptist Church v. Insurance Co., 19 N. Y. 305. It is usually in writing, but may be by parol or by parol ac ceptance of a written proposal ; Union Mut. Ins. Co. v. Insurance Co., 2 Curt. 524, Fed. Cas. No. 14,372 ; Commercial Mut. Marine Ins. Co. v. Insurante Co., 19 How. (U. S.) 318, 15 L. Ed. 636; Mobile Marine Dock & Mutual Ins. Co. v. McMillan, 31 Ala. 711; Ellis v. Insurance Co., 50 N. Y. 402, 10 Am. Rep. 495; Ela v. French, 11 N. H. 356. It must be in such form or expression that the parties, subject, and risk can be thereby dis tinctly known, either by being specified or by references so that it can be definitely re duced to writing; Trustees of First Baptist Church v. Insurance Co., 19 N. Y. 305.
Such an agreement must have an express or implied reference to some form of policy. The ordinary form of the underwriters in like cases is implied, where no other is fied or implied; Eureka Ins. Co. v. Robin son, 56 Pa. 256, 94 Am. Dec. 65; 2 C. & 91; 3 B. & Ad. 906 ; Hubbard v. Insurance Co., 33 Ia. 325, 11 Am. Rep. 125 ; Barre v. Insurance Co., 76 Ia. 609, 41 N. W. 373 ; Oliver v. Insurance Co., 2 Curt. 277, Fed. Cas. No. 10,498.
Where the agreement is by a communica tion between parties at a distance, an offer by either will be binding upon both on a despatch by the other of his acceptance within a reasonable or the prescribed time, and prior to the offer having been counter manded ; 1 Phil. Ins. §§ 17, 21; Myers v. In surance Co., 27 Pa. 268, 67 Am. Dec. 462.
It is a common practice to "bind" insur ance against fire for a short period by mere oral communication.
See POLICY; INSURANCE.