Clausells v. Commercial Union Assurance Co.

This case involves the right of a fire insurance company to put into force in Porto Rico what is known as the coinsurance clause. By such clause an insurance company limits or seeks to limit its liability in case of partial loss. Sometimes the. insurance company refuses to assume a full liability for a loss by fire unless the property is insured for 75 or 80 per cent of its value; sometimes, as in the policy before us, the clause in question requires the property holder *111to keep the property fully insured. Under said clause the policy holder in effect would become an insurer jointly with the…