66 Ind. App. 567 | Ind. Ct. App. | 1918
— The undisputed facts, pertinent to the questions presented by this appeal, disclosed by the pleadings and the evidence, are in substance' as follows:
On July 18,1912, the Commonwealth Life Association, an Indiana corporation of Crawfordsville, Indiana, issued a policy of insurance to S. A. Richardson and Florence Richardson, husband and wife, by which, for the consideration therein named, it insured their lives jointly in the sum of $1,000, which sum, upon the death of either, it agreed to- pay to the survivor, if living, otherwise to the executors, administrators, etc., within sixty days after receipt and approval of due and satisfactory proof of the interest of the claimant. Afterwards appellant proposed to assume all liabilities on said policy, which proposition was accepted by appellee, and a written certificate of such assumption was issued to appellee, which provides that appellant assumes under and according to the terms and conditions thereof said policy, etc.
The complaint makes the policy and application, and appellant’s written assumption of liability thereon respectively parts thereof by way of exhibit, and contains the usual averments showing performance on the part of deceased and of appellee of the conditions of the policy required of them, proof of notice of the death, etc., and appellant’s neglect and failure to pay. Its sufficiency was not questioned.
The appellant filed an answer in three paragraphs, the first of which is a general denial. The second and third paragraphs respectively set up a special defense predicated on certain provisions of the policy and application.
These provisions are as follows (for convenience, we italicize the portions italicized by appellant in its brief):
Provisions of the policy:
“In consideration of the statements contained in the written and printed application No. 1830, and the medical examination of this policy, and the payment in advance of the sum of Twenty-one and 5*0/100 Dollars, this insurance is hereby granted. The conditions, privileges, and benefits tvritten and printed on the following' pages form a part of this contract as fully as if recited over the signatures hereto affixed.
“The policy and application, a copy of which is hereto attached, hereby constitutes the entire contract between the Association and the insured.
“This policy shall be in full force only upon delivery to the insured, and upon condition that he be then in good health.
*572 “No agent shall have power in behalf of the Association to modify this contract in any way whatsoever.”
Provisions of application (Part 1.) :
“I, S. A. Richardson, hereby make application for membership and insurance in the Commonwealth Life Association of Crawfordsville, Indiana. My residence and P. O. address is * * * Grreentown, State of Indiana. My age nearest birthday is 52 years. . I apply for One Thousand Dollars of insurance'. My occupation is minister. Do you carry life insurance? Yes. What companies and amount in each? Modern Woodmen, $1,000. Have you ever applied for life insurance without receiving the amount and kind applied for? If so, when and to what companies? No.
“I hereby declare and represent that I am in -good health, * * * and that all the statements and answers to the above questions are true.
“I hereby agree * * * that the foregoing, together with this declaration, shall constitute the application and become a part of the contract for insurance hereby applied for. And it is agreed that the policy herein applied for shall be accepted subject to the privileges and conditions therein contained; and said policy shall not take effect until the same has been issued by the said Association and delivered to me during my life time, and while in good health. ’ ’
■ Part 2 of the application consisted of questions and answers, among which were the following:
“7. Are you now in good health? Yes.
“9. Have you ever had any of the following complaints, diseases or symptoms? Dyspepsia or indigestion or any diseases of the stomach or abdominal organs. * * * Cancer or tumor or ulcers * * *?
*573 “Of each illness, state date of attacks, severity, complications and results.
“Dyspepsia mild two months’ duration, does not cause him any trouble at present. Has not taken but little medicine for same. Home remedies. O. L. S.
“10. Have you ever had any other illness, injury, surgical operation or constitutional disease? Give date, duration and effects. No.
_ “11. Give name and address of any physician consulted in last fiv.e yearsf None.
“12. When, and for what complaint? * * *
“I declare, on behalf of myself and of. any person who shall have or claim any interest in any policy issued hereunder, each of the above answers to be full, complete and true, and that I am temperate, and in the best of my knowledge and belief in sound physical condition and proper subject for life insurance.”
The sufficiency of none of said answers is questioned, and for the purposes of the questions presented by the appeal, we need only indicate their general scope and tenor. The averments of said second paragraph are to the effect that the policy sued on was issued to the deceased upon his written application therefor, and that in this application he made the representations above indicated relating to his health; that such representations were warranties; that when said policy was issued and delivered deceased was not in good health, as he well knew; that his said statements and warranties of good health were false in that he was at said time suffering from a disease of the stomach from which he afterwards died; that such statements and warranties were material to said risk, and that appellant was ignorant of the facts and relied on them, etc.
The third paragraph of the answer contains substantially all the averments of the second, and in addi
To said special answer there was a reply in general denial and a special reply in which it is alleged that the Commonwealth Insurance Association had full knowledge of the matters averred in each of such answers at the time it issued and delivered said policy, and that appellant also had full knowledge thereof.
There was a trial by jury. Interrogatories were propounded and answers thereto were filed with the general verdict. A motion for judgment on such answers, and a motion for a new trial were each over
The motion for a new trial contains thirty-two grounds. The correctness of most of the respective rulings presented by said assigned errors, however, depends in the main upon the single question hereinafter indicated.
The legal principle upon which appellee’s contention is based is recognized in the cases cited. Indeed, appellant in its answers expressly recognized said principle and avoided its effect by the answers which we have indicated, supra. However, the issue thus tendered, while controlled by said principle of law, was nevertheless ah issue of fact to be determined by the court or jury which tried the facts, and hence this court could not affirm the case on such issue alone, unless the record is such as to show that the verdict
Upon this subject the record discloses the following facts: The insured died July 29,1913. The proof of death was executed in August, 1913. The exact date of its receipt by appellant is not disclosed by the evidence, but was presumably in August, 1913. The complaint was filed June 9,1914. Appellant appeared and filed an answer on September 15,1914. A motion for change of venue was made September 26, 1914. An actual tender was made on November 19, 1914, at which time the money was paid in court.
There was an agreement entered of record by the parties, which provides as follows:
“Let it be admitted by both sides, that prior to November 19, 1914, the defendant in this case notified and told the plaintiff that the policy of insurance sued on in this action was void and that said defendant refused to be bound by the same' and defendant offered, to pay, repay, to plaintiff ¿11 money received by the Commonwealth Life Association and by the defendant in this case, from the decedent Steven A. Richardson, and from this plaintiff as premiums ■ on account of said policy of insurance, and that plaintiff refused-to accept any such payments and that on this, the 19th day of'November, 1914, before the defendant filed its answer to plaintiff’s complaint in this case, defendant tendered the plaintiff the sum of $38.60, being the full amount of money received by said Commonwealth Life Association and said defendant from said decedent Richardson, and this plaintiff, on account of such policy of insurance, together with (6%)*577 six per cent, interest and amount of said money from date of such payment, and that the plaintiff refused such tender on such date.
' “Let it he further admitted that the tender having been refused, the defendant paid into court the said sum of $38.60, together with the further sum of $6.50, being the full amount of costs in the case up to that date and filed_ the receipt of the clerk for said amount as exhibit to its answer.”
The parties differ in their interpretation of this agreement and what was intended by it, it being contended by appellee that the only offer to repay premiums ever made by appellant was one made on the day that it paid the money into court, but prior to its paying the same into court. Appellant, on the other hand, contends that the agreement shows that there was a previous tender or its equivalent, in that it sIioavs that prior to November 19,1914, the day of the actual tender and payment of the money into court, the appellant notified appellee that her policy was void, that it would not be bound by it, .and offered to repay to her the premiums received, etc., and that appellee refused to accept them. Appellant claims also that, by its answers to interrogatories, the jury expressly found against appellee on this issue. The questions and answers upon which this contention is based are as follows: “Interrogatory No. 34. — Did the defendant, upon learning that the said S. A. Richardson was not in good health at the time the policy. of insurance herein sued on was issued and delivered to him by the Commonwealth Life Association, notify plaintiff that it would not pay the amount of money mentioned in said policy of insurance, for that reason?
Ans. Yes. After they claim the said S. A. Richardson was not in good health. Interrogatory No. 35—
For the purposes of the question under consideration, it is not necessary to determine whether said answers show a finding in appellant’s favor on said issue. It is sufficient for sáid purpose to say that they do not show that the verdict of the jury was predicated, on said issue, and hence would not warrant an affirmance of the judgment thereon, regardless of errors that may have been of influence in the deter
By their answers the jury expressly found as follows (we omit those indicated supra, and italicize those specially relied on by appellant): The deceased made his application for insurance July 15,1912. The policy was issued by the Commonwealth Life Association of Crawfordsville, Indiana, upon said application July 18, 1912, and was delivered to decedent July 22, 1912. Decedent was in good health at the time of the issuing of said policy, at the time of its delivery, and on July 15, 1912, when he signed said application, and continued to be in good health until the fall of 1912. The Commonwealth Insurance Association, both at the time of issuing and delivering of said policy, relied on the statements made by Richardson in his said application and at neither of said times knew that any of said statements were false or untrue. On April 1, 1913, the appellant entered into a contract with said Commonwealth Association to reinsure the risks of said association, and thereafter, viz., on June 21,1913, issued the certificate of assumption set out and described supra. The appellant at the time it issued said certificate of assumption did not knoiv or have any notice or information that any of the statements made by Richardson in his said application were false or untrue; nor did it at said time have any knowledge, notice or information that said Richardson was not in good health, either at the
We have omitted from this summary the answers to interrogatories Nos. 41, 43 and 47. They are as follows: “Interrogatory No. 41. — Did plaintiff’s decedent, the said S. A. Richardson, on the 15th day of July, 1912, carry any life insurance tohi'ch was in force on said date? (Our italics.) Ans. No. Interrogatory No. 43. — Did plaintiff’s decedent, the said S. A. Richardson, on the 15th day of July, 1912, carry a policy of life insurance which was in force in the -Modern Woodmen for One Thousand Dollars. Ans. No. Interrogatory No. 47. — Did plaintiff’s decedent, the said S. A. Richardson, within the last five years next preceding the 15th day of July, 1912, consult any physician for any bodily ailment? Ans. -Yes, for dyspepsia.”
Appellant’s claim that his motion for judgment on said answers should have been sustained is based on the assumption that the declarations and answers of deceased in his policy and application must be treated as warranties. Giving appellant the benefit of this assumption, does it follow that his motion should have been sustained?
The first representation relied on in appellánt’s answer is that relating to the health of the deceased at the time he applied for and received his policy. The answers to interrogatories indicated supra expressly find that it was good on each of said dates and up to the fall following the receipt of his policy. The general verdict is a like finding. So, for the purpose of the question under consideration, this alleged false representation is eliminated.
The answers complained of as being false gave
The reverse of the rule contended for by appellant seems to be generally recognized and supported by authority; that is to say, warranties in an application which are not made part of the policy will be treated as representations. Commonwealth’s Ins. Co. v. Monninger, supra; Presbyterian Mut. Assur. Fund v. Allen, supra, and cases cited; 25 Cyc 798 [35], and cases cited.
'We recognize that there is authority supporting appellant’s contention, and that there is language in some of the Indiana eases cited by appellant which seems to do so. It should be observed, however, in this connection, that in each of these- cases the policy involved contained language which properly warranted the court in the respective cases in holding that the declarations in the application were warranties, and hence any expression therein to the effect
We submit that in the instant case there is no language that can be said to clearly show such intent. On the contrary, the words used by the parties are ‘ ‘ declare ’ ’ and £ £ represent. ’ ’ - The word £ £ warranty ’ ’ does not appear in either the policy or application. We recognize that the determination of the question involved is not necessarily controlled by the particular words of the answer or declaration (Moulor v. American Life Ins. Co., supra, 342, 343; Alabama, etc., Ins. Co. v. Johnston, supra.); but the repeated use of the one set of words to the exclusion of the other is at least some evidence of the intent of the parties. There is no provision or agreement, either in the policy or
In our judgment, the language of this policy and thó application, when read as an entire contract, indicate that the inteiit of the contracting parties was to treat the answers and declarations therein as representations only, or at least any intent to treat them as warranties is not clearly indicated by their contract, and hence we are justified, by the weight of modern authority, in treating said' answers and declarations as representations only.
What we have said in our discussion of the foregoing questions in effect disposes of those grounds of appellant’s motion for new trial which challenge the action of the trial court in overruling a motion made by appellant at the close of appellee’s evidence for a peremptory instruction, and repeated at the close of all the evidence. It likewise disposes of those grounds of its motion challenging the action of the court in giving and refusing instructions, in so far as such instructions can be said to involve any statement prejudicial in its effect upon the verdict returned by the jury.
A brief statement of the evidence on the questions indicated will, we think, furnish a complete answer to this contention. The evidence showed that deceased died of a cancer of the stomach, a little over a year after he applied for and received the policy of insurance in suit. A physician, Dr. Freeman, testified that deceased had been to see him and had got some medicine for indigestion or dyspepsia probably twice in June and once or twice in July, 1912, and that he continued to get medicine and to receive treatment for the same trouble up into the December following. It also appears from the evidence that deceased was operated on in January of the year following, and it was then ascertained that he had a cancer of the stomach so far developed that the exploring surgeon refused to attempt to remove it. This is in effect the evidence on which appellant bases its contention that deceased was not in good health and that he knew he was not in good health when he made his application and received his policy.
There was evidence tending to impeach the physician who testified that decedent visited him in June or July, 1912, and got medicine of him. This attempted impeachment was by proof of contradictory statements made to appellee. It follows that the jury
The' only ailment testified to by this doctor was indigestion or dyspepsia. Appellant’s own doctor, who passed upon the application here involved, testified in effect that dyspepsia was not regarded as a disease, but a symptom only. He also testified in effect that one’s good health within the meaning of insurance risks is affected only by a disease or affliction which is acute, or one which affects the general health in the sense that it will in all probability shorten life. As pertinent to this question, see: Northwestern Mut. Life Ins. Co. v. Heimann (1884), 98 Ind. 24; Metropolitan Life Ins. Co. v. Johnson, supra; Fidelity Mut. Life Assn. v. McDaniel, supra, and cases there cited.
On cross-examination, said Freeman testified in effect that on the occasions when deceased came to him he had no suspicion of a cancer; that cancer was not mentioned; that he never heard of his having a cancer until after the operation. One of the doctors who assisted at the operation testified in effect that he could not tell from the condition and appearance at the time of the operation how long the cancer had been in developing, and could not say whether the deceased was afflicted with it in the previous July. Numerous witnesses testified that appellant filled his appointments as always up until sometime in December, and that they never heard of his having a cancer until after said operation.
Under the evidence, the jury was warranted in finding, as it did, in effect, both in the general verdict and in its answers to interrogatories,- that the deceased
This ruling of the trial court is in effect upheld by the case of Iowa Life Ins. Co. v. Haughton, supra. See cases there cited.
With this evidence in, it clearly appears that said answer of deceased in his application, at least so far as it was material, was substantially true.
We have already indicated that said answer was a representation only, and hence the jury were perfectly warranted in finding that, so far as material to the risk, snch answer was substantially true and not fraudulently made.
Other rulings of the trial court are challenged hy appellant, hut in so far as they are not disposed of hy what we have already said, they are shown hy the answers to interrogatories not to have been prejudicial, or otherwise they are of that technical character that affords no ground for reversal under §§407 2221 Burns 1914, §§398,1891 R. S. 1881.
Most of the questions raised hy appellant are practically covered and determined against him in one or the other of the following cases decided hy this court, and the cases therein cited: Fidelity Mut. Life Assn. v. McDaniel, supra; Iowa Life Ins. Co. v. Houghton, supra; American, etc., Ins. Co. v. Rosenstein, supra; Metropolitan Life Ins. Co. v. Johnson, supra; Catholic Order of Foresters v. Collins, supra; Prudential Life Ins. Co. v. Sellers, supra.
The trial court was evidently controlled in its rulings hy said cases, and our examination of the entire record convinces us that appellant has had a fair trial, in accord with the law as declared therein, and that a just result, consistent with the merits of the case, has been reached.
The judgment below is therefore affirmed.
Note. — Reported in 118 N. E. 576. Insurance: distinction between warranty and representation, 4 Ann. Cas. 255; knowledge of insurer’s agent of falsity of statements in application, effect, 16 L. R. A. 33. See under (6, 7, 9, 10) 25 Oye 798, 802, 944.