Insurance — liability — agency — ratification of contract — contractual cancellation — implied authority — ostensible authority — Lim v Ward McCulloch Solicitors Nominees Ltd (1999) 8 NZCLC 261 — Shoye Venture Limited v Wilson [2013] NZHC 658 — Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 — The Roofing Specialists Ltd v BLMN Engineering Co Ltd [2012] NZHC 3391 — Porirua City Council v Walton [2012] DCR 398 — West v Dillicar [1920] NZLR 139 — NZ Building Trades IUW v Ebert Brothers Construction Ltd [1991] 3 ERNZ 1004 — Wilson v Guardian Royal Assurance Company of New Zealand Ltd (1996) 4 ANZ Insurance Cases 60-694 — Woruco Holdings No. 5 Ltd v AMP General Insurance (NZ) Ltd [1993] DCR 734. The plaintiff's home was originally subject to a Housing Corporation of New Zealand (HCNZ) mortgage and was insured, for the term of the mortgage, by National Insurance (NI). HCNZ forwarded the premiums paid to them by the plaintiff to NI. HCNZ ultimately sold their mortgage portfolio to Home Mortgage Company Limited (HMC) and Vero acquired the plaintiff's insurance policies. The plaintiff continued to pay the premium to HMC who, as the plaintiff's agent, forwarded them on to Vero. The plaintiff's home suffered fire damage shortly after her insurance policy was apparently cancelled by her provider, on completion of repaying her mortgage. The plaintiff claimed that as neither Vero nor HMC had the right to cancel her insurance policies she remained covered by her insurance contracts with Vero. The question before the Court was whether the policy was in fact cancelled and accordingly whether the defendant was liable for the damage. The Judge found that the defendant had the legal right to cancel the policy under the contract, and that the plaintiff ratified the cancellation of her insurance. The Judge determined that notice was given and that there was evidence the plaintiff was aware the policy had been cancelled. For those reasons, the Judge held the defendant was not liable for the damage as there was no insurance during the time of the fire. Judgment Date: 24 September 2018.