131 N.W. 246 | N.D. | 1911
This action involves a question of the liability of the defendant herein upon a life insurance policy issued by the defendant to one Charles E. Rich, in which policy the plaintiff herein is named as beneficiary. The policy is dated May 9th, 1908,, and is in the sum of $1,000. It is not necessary to set forth the pleadings in detail, as almost all of the facts are admitted by the parties. The answer of the defendant, however, in three paragraphs thereof,, sets forth statements which the trial court failed to find as facts in this-case, which failure is assigned as error. These paragraphs are as follows:
Paragraph 5: “Defendant further alleges that said Charles E. Rich committed suicide on the 11th day of May, 1909, and, as a result of said act on his part, died on said 11th day of May, 1909; that saidi act of suicide was committed while said Charles E. Rich was sane, and was with the deliberate intention of taking his own life, and was-committed by said Charles E. Rich on that particular date in contemplation of the expiration of one year from the date of said policy, and. for the purpose of creating a liability upon the defendant under the-terms and conditions of said policy of insurance; that said Charles E. Rich intentionally, and for the fraudulent purpose of creating a liability against the said defendant, waited until the expiration of one-
Paragraph I: “Defendant further alleges that the period of one year from the date of the execution and signing of the said policy by the defendant, or from the date of the said application of the said Charles E. Eich, did not expire until the 19th day of May, 1909, eight days subsequent to the date of the suicide of the said Charles E. Eich.”
Paragraph 8: “That the said defendant received no benefit nor consideration for the affixing of the date of said policy of insurance as of a date previous to the actual signing and execution thereof.”
Among the undisputed facts in this case, we find that the insured was born November 13, 1865; premium based on age; that on the 18th day of May, 1908, he made his written application to the defendant for a policy of life insurance in the sum of $1,000, and that said application was, in due course, forwarded to the head office of the defendant and was duly accepted by the defendant, and the defendant duly issued and delivered to the said Charles E. Eich the said insurance policy, which policy was delivered on or before the 1st day of July, 1908; that for the conduct of its business, defendant from time to time “issued rules and regulations and instructions for the local agents, to guide them in the reception of applications,” and at the time this application was received one of the said rules of the said company in force was as follows:
“Insurance age; dating back. — The insurance age is determined by the birthday of the insured closest to the date of the policy (which is the same as that of the examination). Where the age has recently changed it is sometimes possible, by the applicant’s request embodied in the application, to have the policy dated back a few days in order to .give the applicant the benefit of the rate of a younger age;” that the written application made by the said Charles E. Eich, as aforesaid, contained the following statement and request: “The premiums are to be paid semiannually. Eirst premium, May 9th, 1908.” Also: “It is hereby warranted and agreed that I will not die by my own hand, whether sane or insane, during the period of one year next following the said date of issue;” that the said policy of insurance, delivered to and accepted by the said Charles E. Eich, contained the following clause and addition: “Suicide. The company shall not be liable hereunder in the event of the insurer’s death by his own hand,
The Mutual Life Insurance Company of New York hereby acknowledge receipt of premiums on said policy. Policy No. 17367639. Premium $8.58 for one half year, due May 9th, 1909.
Countersigned May 10th, 1909, at Eargo, No. Dak.
W. A. Smith, Manager.
Per J. C. Whitney, Agency Cashier'.
W. J. Easton, Secretary.
that the provisions of the said life insurance policy are all in printed language, prepared by the defendant, and that the warranty on the part of the insured that he would not commit suicide during the period stated was in printed language, prepared by the defendant in making out its form of application for insurance; that the said Charles E. Rich committed suicide on the 11th day of May, 1909, dying on the said date; that the said Charles E. Rich, at the time that he com
In the trial of the case the defendant submitted the testimony of one E. L. Richter, who testified in substance that he had been acquainted with the insured for between twenty-five and thirty years, and that witness and insured were good friends, which friendship continued up to the day of his death; that on the 27th day of April, 1909, witness had a conversation with the insured at the office of the witness, at Larimore, at which time they were discussing the financial' affairs of the insured, and some life insurance policies which the insured had, payable to his daughter, Hattie E. Rich; that the insured said to him that he wanted to raise money on his life insurance policies in order to remedy his financial difficulties; that at said time the witness and the insured discussed the suicide clause in the policies, andi the insured stated that the clause ran out somewhere between the 7th. and the 9th of May, and that as soon as the said clause expired he, the insured, would kill himself, but that he wanted to wait until after the year had expired, so as to be sure that his daughter would get his; insurance; and that he would commit suicide within a day or two after the expiration of the suicide clause; that the insured did not appear to have been drinking or be intoxicated at that time, and that
Upon the evidence in this case the trial court found, as a matter of law, that the plaintiff was entitled to judgment for the full amount of the policy, to wit: $1,000, with interest thereon from the éth day of June, 1909, at 7 per cent, and judgment was accordingly entered. A motion for a new trial was made and denied, and the defendant prosecutes its appeal to this court from the said order for judgment and order denying motion for a new trial, and in its assignments of error set forth that the trial court erred, in failing to find as true the facts alleged in ¶¶ 5, 7 and 8, of the defendant’s answer; in making the conclusion of law in which the plaintiff is entitled to judgment as hereinbefore set forth, in ordering and granting judgment in favor of the plaintiff and against the defendant; and in additional assignment of error sets forth that the court erred in denying the motion for a new trial on the following grounds: 1. The evidence is insufficient to support the judgment, in that it appears affirmatively by the pleadings and evidence in said case that Charles E. Rich, the insured, committed suicide within the period of one year from the issuance of the policy of the insured; and that the policy of insurance issued to said insured thus became void and unenforceable.
2. The evidence is insufficient to support the judgment in that it appears affirmatively in the testimony in said action, that the insured committed a deliberate fraud against the insurer, and by his deliberate act while sane determined the rights and liabilities of the parties to the contract of insurance; and that the said insured intentionally and for the fraudulent purpose of creating a liability against the said defendant company, insurer, waited until the expiration of one year from the date of said policy for the purpose of creating a liability thereunder against the said defendant company, insurer, and that by reason of said fraud said policy became void and unenforceable.
Two propositions are presented to us by the appellant, quoting from its brief: “First, is the defendant company liable upon a policy of insurance in case of the death of the insured by suicide in less than a year from the time of the issuance of the policy, although an artificial period of more than one year is produced because of the dating back
At the outset we may state that the facts show the dating back of the policy from the date of the application, May 18, 1908, to the alleged 'date of the execution of the policy; to wit, May 9, 1908. While’ •done at the request of the insured, it was done in accordance with genera! rules and instructions issued to agents in general, and not for the :sole and specific benefit of this insured, nor was it for the sole benefit of the insured as against the company; for while the insured received a reduction of some 48 cents in his premium for the first year, _yet the company received the benefit of insuring the insured during • eight days already passed when there could be no risk assumed by the company in fact.
The first proposition presented to us raises the question of the date -of the policy. On its face the policy is stated “to be executed this 9th day of May, 1908.” The general rule is that a policy of life insurance, if delivered, takes effect from its date unless it be otherwise stated. See May, Ins. 2 ed. § 400. If it be alleged that the contract takes effect at some other date, then evidence of this contrary intent must be ; shown. Of course, the burden of introducing such evidence would be upon him who alleges it.
In 25 Cyc. Law & Proc. p. 742, the rule is laid down that the risk is presumed to commence from the date of the policy, in the absence of any provision or agreement to the contrary. This rule is the same ¡as the one set forth in the case of Union Ins. Co. v. American F. Ins. Co. 107 Cal. 328, 28 L.R.A. 692, 48 Am. St. Rep. 140, 40 Pac. 431. In Rayburn v. Pennsylvania Casualty Co. 138 N. C. 379, 107 Am. St. Rep. 548, 50 S. E. 762, the court says: “Where insurance is applied for and afterwards a policy is issued and delivered, it is based on the status of the insured at the time of the application, and the company :assumes the risk after the date of the policy.” A careful examination of the record fails to disclose any intent contrary to this rule. If we .assume, without reference to § 5948 of the Revised Codes, that the defendant is in position to raise the question'as to the actual date of the
Appellant says the fact that the company agreed to the dating back does not estop them from raising this question, because the dating back was but for one purpose, and that was the fixing of the date of payment of the premiums. We cannot agree with this in its entirety. The purpose for the dating back of the contract may have been to get a little-less rate of premium; but the fact stands that the contract itself was. dated back; that is, the whole contract, and not the portion alone dealing with the insurance rate. If the contention of the appellant were-correct, the purpose could have been obtained by simply making the-contract as of its correct date, but lowering the rate of insurance. Instead of doing this, the company maintains its uniform rate, but takes, a retrospective risk.
Section 5948 of the Revised Codes of 1905, says: “An acknowledgment in a policy of the receipt of premium is conclusive evidence-of its payment, so far as to make the policy binding, notwithstanding any stipulation therein that it shall not be binding until the premium is actually paid.” Indeed it has been held, even, in the absence of’ such a statute and in a case where a policy of insurance contained a. provision, that the company should not be liable until the premium should be actually paid to the company, where also the policy contained a receipt for the premium that the company was estopped from setting, up the nonpayment of the premium for the purpose of avoiding the instrument. The company might actually recover the premium, but, so
In the policy involved there is a distinct acknowledgment of the receipt of the premium, and therefore the defendant company cannot be-permitted to offer any evidence to show that the policy was not binding. This expression, “to make the policy binding,” necessarily means-the contract in its entirety, as agreed upon by the parties, and it becomes immaterial whether-the date is artificial or actual. The company cannot be heard to say that this actual contract entered into between the parties is not, for all contractual purposes, binding and conclusive.
That a company may contract to insure for a period already passed is well settled. See Kerr, Ins. pp. 100, 101, where it is stated “that the term of insurance may by stipulation begin upon the date of the-application, and the policy when issued may be dated prior to the date-of its execution, and cover risks which have occurred prior to that time. The intent of the parties, when ascertainable, should control.” See-also American Horse Ins. Co. v. Patterson, 28 Ind. 17; Philadelphia L. Ins. Co. v. American Life & Health Ins. Co. 23 Pa. 65.
In Hallock v. Commercial Ins. Co. 26 N. J. L. 268, where a company took a risk to commence previous to the date of the policy, the-court said: “The company would be as much bound as if the loss occurred after the policy was delivered.” This was a case involving a fire insurance policy, where the property was burned without the knowledge of either party, after the agreement to insure was entered into and before the policy was issued. See also Commercial Ins. Co. v. Hallock, 27 N. J. L. 645, 72 Am. Dec. 379.
In Lightbody v. North American Ins. Co. 23 Wend. 18, it was held the company was liable on the policy even though not delivered for several days, and .the property was destroyed before the date, but-after the agreement to insure was entered into, and the policy was not delivered until two or three weeks after the date. To the same effect is Whitaker v. Farmers’ Union Ins. Co. 29 Barb. 312.
In the case of Davenport v. Peoria M. & F. Ins. Co. 17 Iowa, 276, the court, independent of any statutory provision, states the rule, that-“the doctrine that an act done at one time may take effect as of a. prior time by relation back ... is applicable to contracts of insur
That is the exact situation in the case at bar. The appellant made provision for and consented to a dating back of the policy, thus making it of the date it bears, rather than the actual date, receiving therefor the absolute assurance that they took no risk in that period dated back. The same rule is upheld in the case of Kentucky Mut. L. Ins. Co. v. Jenks, 5 Ind. 96-103. The appellant argues that, under the contract, parties could not have had in contemplation the dating back of the period during which the insured could not commit suicide, and alleges that because, in § 6061 of the Revised Codes of 1905, the legislature says: “It shall be no defense after the policy has been in force one year that the insured committed suicide.” This must necessarily mean one year from the actual date of the policy. The purpose -of that section is to prevent an insurance company from making a longer period than one year during which the defense of suicide may be set up, but does not prevent the company and the insured from .shortening the period. Surely it would not be argued, if a company ;saw fit to eliminate the suicide exemption entirely or to expressly pro-wide that the policy was incontestable from date as against the defense
In its second proposition, defendant seeks to avoid liability, because the act of suicide was premeditated and the date of the liability of the company was fixed by the voluntary and fraudulent purpose and Act of the insured. This is based solely upon the testimony of the witness Richter. It is clear from a reading of the policy that the company and the insured contemplated the possibility of the commission of suicide by the insured while he was sane. The fact is admitted that the insured committed suicide while sane. Therefore, of a surety his Act was premeditated, but such premeditation was one of the risks assumed by the company, and if his suicide could be premeditated, though the period of premeditation may be short, the liability of the •company must necessarily be fixed by the voluntary purpose and act of the insured.
To allow the company to set up the defense of suicide during the .sanity of the insured, and the fixing of the liability by the voluntary purpose and act of the insured, would be practically to wipe out the provision fixed by our statute that the defense of suicide could not be set up after the policy had been in force one year. Since the insured was sane when he committed suicide, his act must necessarily have been voluntary and premeditated. There is nothing to show that the premeditation extended to a period prior to the application for the insurance ; but even if it did, death by suicide is one of the risks that the company insures against.
Appellant claims that this premeditated act of suicide was fraudulent as against the company, and that the fraud is shown by the testi
Appellant in his brief says: “Plaintiff cannot recover in the face-of this testimony upon general principles alone, for, if the testimony proves anything, it proves that the insured violated the contract, in that he intentionally created a liability against the defendant company. It certainly cannot be contended that the fixing of liability under a contract is within the sole power and control of one of the parties.” In support of this he cites Hopkins v. Northwestern Life Assur. Co. (C. C.) 94 Fed. 729, and other cases. An analysis of this case shows that it was decided upon the assumption that the policy was. silent entirely as concerning suicide. The court held, in that case, self-murder was not within the contemplation of the parties. This, however, is not the state of facts in the case at bar. The possibility of self-murder was taken into account; and, whether sane or insane, the' insured was limited to a period of one year, and the company therefore obligated itself to pay, in case of suicide after the period of a year. It cannot be heard now to disclaim this liability because of the possibility that the insured may have contemplated suicide before the expiration of the year. The appellant cites Ritter v. Mutual L. Ins. Co. 169 U. S. 139, 42 L. ed. 693, 18 Sup. Ct. Rep. 300. The policy in that case contained a clause that the insured warranted and agreed that. he would not die by his own act, whether sane or insane, during the. period of two years, which period was to begin on the 6th day of November, 1891. The insured committed suicide October 5, 1892. The • court, however, goes on to decide that suicide is not in the contemplation of the parties when they enter into, a policy of life insurance, stat- -
The evént which happened having been without the contemplation of the parties, and the parties having voluntarily shortened the actual period during which, if the act occurred, the company would not be liable, we hold that the time limitation of the act of suicide had expired, at the time of the self-destruction of the insured, and that the ■company thereupon became liable for the full amount of the policy.
It follows, therefore, that the lower court committed no error in refusing to find as facts the statements set forth in paragraphs 5, '7, and 8 of the defendant’s answer, as desired by the defendant, and the judgment of the lower court is, therefore, affirmed.