HEARTS OF OAK PERMANENT BUILDING SOCIETY v. LAW UNION & ROCK INSURANCE COMPANY, LTD.

(1936) 55 Ll.L.Rep. 153

KING'S BENCH DIVISION.

Before Mr. Justice Goddard.

Fidelity guarantee insurance-Defalcations of officer of building society- Claim by society under policy- Questions in proposal form as to duties of society's employees-"How often are they required to send statements of cash received? Daily. How often do you require them to pay over to you and are they then allowed to retain a balance in hand; if so, how much? And do you see that they have the amount in their possession? They should not retain and should pay over as received" -Condition 1: "If during the continuance of this policy any circumstance shall occur or change be made which shall have the effect of making the actual facts differ from the statements contained or implied in such questions and replies or any of them without notice thereof being given to the company and the consent or approval in writing of the company being obtained, or if any suppression or misstatement of any fact affecting the risk of the company be made at any time, or if the employer shall continue the employed in his service after having discovered any act of fraud or dishonesty on the part of the employed this policy shall be void and all premiums thereon paid to the company forfeited" - Purpose of questions-Knowledge of society's secretary before renewal of policy that in some instances the employee had not handed over money with the promptitude with which it was his duty to act- Whether breach of warranty as to truth of answers.