118 Ky. 36 | Ky. Ct. App. | 1904
Opinion of the court by
Affirming.
Appellant issued to John T. Bailey a policy of date March 16, 1891, by which, in consideration of $15, it insured his life in the sum of $1,000 until March 16, 1892. The policy contained these stipulations: “And. the said
The defendant pleaded that, after deducting the policy’s share of death losses on the 16th of March, 1901, the sum applicable to extended insurance on the policy was $5.02, which extended it for the period of 184 days from March
We do not see that the defendant is in position to complain of the action of the court in admitting the copy of its report to be read, for it was only admitted to show what tables the, defendant was using at the time the policy was issued, and there was no issue in the pleadings on this sub
It is conceded that, if the extended insurance is computed by the American - Tables the policy did not expire until September 26th, but that, if it is computed by the Actuaries Tables, it expired oh September 16th. So the only question in the case is, by which tables shall the rights of the parties be determined? It is shown by parol evidence that the company changed from the American to the Actuaries Tables in November, 1893. It is also shown that by a statute of New York in the laws of 1892 (Laws 1892, p. 1968, c. 690, section 84) policies were required to be valued by the Insurance Commissioner according to the Actuaries Tables, and that by another statute, enacted in April 1901 (Laws 1901, p. 944, c. 346), they were required to be valued according to the American Tables. After the death, of Bailey the cqmpany "wrote appellee’s attorney that the policy was entitled to extended insurance
The policy being silent as to the method or tables by which the extended insurance is to be calculated, parol evidence is competent to show what tables were then in use by the company; for it must be presumed that the parties contracted with reference to the tables which had been adopted by the company and were then in use by it. After the policy was issued, and the rights of the parties were fixed by it, the company was not at liberty, without the consent of the assured or the beneficiary in the policy, to adopt another table less favorable to the assured and more favorable to the company; for, if it could do this, instead of cutting the time down ten days, it might thus cut it down one-half or more, and so deprive the insured of a very substantial part of his contract. It has been held that when a person applies to an insurance company for a policy he is presumed to apply for the form of policy in use by the company. The same rule must govern the insurance company when it issues a policy calling for extended insurance, and not defining by what tables the extended insurance is to be calculated. The parties must be presumed to contract with reference to the tables then in use, for else the policy would have no definite meaning; and after the policy
Judgment affirmed..