115 Wis. 641 | Wis. | 1902
While the contract on which this action is brought is called a policy of insurance, it is in fact a benefit certificate issued by a fraternal order to one of its members, and contains a provision by which the insured member is allowed at any time to surrender it without consent of the beneficiary and receive a new certificate. It was never in fact surrendered, nor was the beneficiary ever changed, and the question is whether, in an action by the beneficiary, an admission made by the insured some years before the issuance of the policy is substantive evidence to prove the falsity of a statement of fact made by the insured in his application, and upon the truth of which the validity of the policy depends.
It is said by the respondent that this question was set at rest by the ruling of this court in -the case of McGowan v. Supreme Court I. O. F. 104 Wis. 173, 80 N. W. 603. That action was one brought to recover upon a fraternal benefit certificate issued in June, 1896, upon an application made in the preceding May. In this application the insured stated
This scheme of life insurance by fraternal orders is comparatively a recent development, and the contracts which are issued to members and called “benefit certificates” are somewhat unique. The law with regard to them can hardly be called settled, but is yet in a formative state. The aim of these organizations is to protect the families of the members, and this aim ought not to be thwarted if it may reasonably be carried out without violation of legal principles. As said, the benefit certificate is unique as a contract: there may be
Upon a careful consideration of the whole subject we feel inclined to adopt the rule that the beneficiary in a certificate of this nature has so far vested interest therein that the prior declarations of the assured are not admissible in evidence to prove falsity of the statements in the application, unless they be made at or about the time of the application
By the Court. — Judgment affirmed.