cipal, it is necessary that such an interest or estate shall have passed to the agent as will entitle him to execute the authority to sell in his own name. Sometimes, the agent will hold a power of attorney, from which it can be seen that he has an interest in the land, and that it was the intention of his principal that the power should be irrevocable by death. But, whatever form the agent's written authority may be in, his right to commissions, or the principal's promise to pay commissions on the sale, will not of themselves be sufficient to create an agency which will survive the principal's death. The agent must have acquired by his power from the principal an interest in the land itself. What constitutes an interest in the land, sufficient for keeping alive an agent's authority after the principal's death, depends very much upon the circumstances of each particular case-so much so that illustrations of the rule here would not be of value. Section 301.-COMMISSIONS ON SALES OF REAL PROPERTY UNDER ORDER OF COURT.-In the settlement of an estate, in any order of sale of real estate, or subsequent to making such order, the court may authorize any executor or administrator to enter into a contract with any bona fide real estate agent to secure a purchaser, providing for the payment by the estate to said agent of a commission, the amount of which shall be specified, payable out of the proceeds of any such sale. If a sale to a purchaser obtained by such agent is returned to the court for confirmation and said sale be confirmed to such purchaser, such contract will be binding and valid as against the estate. By the execution of any such a contract no personal liability will attach to the executor or administrator, and no liability of any kind will be incurred by the estate unless an actual sale is made and confirmed by the court. Act of the Legislature, approved March 10, 1909. Section 302.-PERSONAL PROPERTY BROKERS.-A personal property broker may charge, receive, and collect, for money loaned or advanced on personal property, secured by chattel mortgage, bill of sale, or other contract, or secured by an assignment of power of attorney respecting wages, salary, earnings or income, the sum of one per cent per month, and no more. No further or other charges, either for recording, insuring or examining the security of property, or for the drawing, executing or filing of papers, or for any services or upon any pretext whatsoever beyond the aforesaid charge for interest or discount shall be asked, charged, or in any way received, where the same would thereby make a greater charge for the money or thing advanced than the aforesaid rate of one per centum per month, and where made, all such charges shall be considered and be of the same effect as so much added interest; provid-ed, however, that with the consent of the borrower he may be required to pay the fees or charges actually expended where the same are made necessary by law to give full legal effect to any instrument given hereunder. No contract of any kind or nature made by any personal property broker which comes within the scope of business as set forth herein, or which in any way involves any security given to secure the performance of such contract, shall be valid or of any force, virtue or effect, either at law or in equity, if there is therein or thereon directly or indirectly charged, accepted or contracted to be received or paid either in money, goods, discount, or thing in action, or in any other way, a greater benefit, rate of discount, or interest than the rate of one per centum per month; and if a greater benefit, rate of discount or interest than one per centum per month is directly or indirectly advanced or paid upon any such contract as is in this section designated, three times the rate above one per centum per month so advanced or paid may be demanded and recovered by the person or his legal representatives or assigns who advanced or paid the same from the person or corporation either to whom or for whose use or benefit such payment or advance or any part thereof was made. The failure of any person or corporation, or any employee, employees, agent, agents, representative or representatives making, renewing or extending a loan or advance properly falling within the scope of business as set forth herein, to comply with any part of the provisions hereof, shall be guilty of a misdemeanor, and for the first offense punished by imprisonment in a county jail not exceeding six months, or by a fine not exceeding $500, or by both, and for each subsequent offense by a fine of not less than $50 or more than $500, or by imprisonment in the county jail of not less than ten days and not to exceed six months, or by such fine or imprisonment. Penal Code, Section 19. Act of the Legislature, approved April 21, 1911 FIRE INSURANCE Section 303.-CONTRACT BETWEEN THE PARTIES.-Insurance against loss by fire constitutes one of the common and important contracts in the business of every community. In California the fire insurance business is carried on by corporations, nearly all having ample capital, and fully able to meet such losses as they are required to pay. Yet so many and so varied are the policies issued, and the circumstances and causes of fires and losses, and the claims and adjustments of claims after fires have occurred, that it is not a matter for wonder that conflicts are continually arising between the insurer and the insured, over the terms and conditions of the contract and the rights and obligations of the parties. The Legislature has attempted in our statute law to fix the mutual obligations and liabilities of the parties to the contract of fire insurance, and the Supreme Court of California has in many decisions stated definite rules of construction which must be applied to the policies issued by insurance companies. The contract of insurance is generally defined by the statute of California as being a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event. Insurance against fire is a contract whereby the insurer becomes bound, for a definite premium or consideration, to indemnify the insured. against loss or damage to the property named in the policy. The policy, and the conditions contained in it, fix the relations between the parties to the contract, and furnish the measure of their respective rights and liabilities. Civil Code, Section 2527. Section 304.-DESIGNATION OF PARTIES.-The party who issues the policy of fire insurance is called the insurer, and the party who is indemnified is called the insured. Civil Code, Section 2538. Section 305.-INSURABLE INTEREST.-Every interest in property, or relating to it, or liability in respect to it, of such a nature that a contemplated peril might directly injure the insured, is an insurable interest, in the law of California. The contract of insurance, being one of indemnity, the insured must have such an interest in the property as that its destruction will result in pecuniary loss to him. But it is not necessary he shall have a title, provided his interest, whatever it may be, is such that it would be impaired or injured by the destruction of the property. Nor is it necessary that the interest of the insured be personal; for if he has an interest in the property as trustee, agent, mortgagee, commission merchant, common carrier, warehouseman, administrator, pledgee, lessor or lessee, consignee, or judgment creditor, the And courts have held that this is an insurable interest. it has been held that even one who has no title, legal or equitable, in the property, and no present possession or right of possession, has an insurable interest if he will derive benefit from the continued existence of the property, or will suffer loss by its destruction. Civil Code, Section 2546. Section 306.-MEASURE OF INTEREST IN PROPERTY.The measure of an insurable interest in property is the extent to which the insured might be damaged by loss of or injury to the property. Therefore, under the provisions of our law, if the owner of a building insures it for more than it is worth, he will not be entitled to the full amount, merely because the company has issued a policy and accepted a premium on a fictitious value; but the amount the insured will be liable to pay, in all cases, will be the amount, to the extent of the policy, necessary to reimburse the insured for the pecuniary loss he has sustained, unless the insurer has agreed in the policy that in case of loss the property shall be valued at a given sum. Where the interest of the insured is less than a whole ownership, as where he has an interest only as mortgagee, his insurable interest in the property is measured by the amount of the debt, and no more; and in fact, the insured can never be entitled to recover more than his actual loss. Civil Code, Section 2550. Section 307.-WHEN INSURABLE INTEREST MUST EXIST. The law of California provides, that the interest insured must exist when the insurance takes effect, and when the loss occurs, but need not exist between those two dates. The meaning of this is, that where the policy does not prohibit it, the insured may dispose of his interest in the insured property, after the policy has been issued, and if before the term of the policy ends, he becomes again the owner of his interest in the property, |
