183 Ind. 59 | Ind. | 1914
— This is an action for alleged' fraud in a settlement on a certificate of membership in appellant’s company-held by appellee, by a complaint originally in three paragraphs. There was a special finding of facts, with conclusions of law stated. There were exceptions to the conclusions of law and over motion for a new trial, judgment was rendered for appellee. The errors assigned and not waived present the questions of the sufficiency of each paragraph of complaint, error in the conclusions of law, and in overruling the motion for a new trial.'
The material allegations of the second paragraph, the. first paragraph having been dismissed, are that the appellant is a mutual assessment accident association, organized and existing under and by virtue of the laws of the state of Missouri, and by reason of full compliance with the laws of the State of Indiana relating to assessment life and accident associations, has been licensed to do business in the State of Indiana as an assessment life association; that appellant, on April 21, 1901, issued its certificate No. 52,316 to Charles W. Smith, of Dillsboro, Indiana, wherein it is certified, that Smith was a member of the appellant association,, and entitled to all the benefits accruing from such membership under the provisions of the constitution and by-laws of the association, and promised to pay such benefits to the appellee, wife of said Smith, in case of death. A copy of the certificate of membership is filed with the complaint as a part thereof, and marked exhibit A. That the application for membership was sent to the appellant, and
"Five thousand dollars shall be paid to the beneficiary named in the certificate of any deceased member in case of death by accident. In case of accident to a member, as provided in §3, Art. 9, he shall be entitled to indemnity as follows: $5,000 in case of loss of both legs or both arms; $5,000 in case of loss of one arm and one leg; $2,500 in case of loss of one hand or one foot; $5,000 in ease of loss of both eyes; $1,250 in case of loss of one eye; provided such death or loss shall occur within three calendar months after the accident which caused it, and such accident being within the limitations and conditions of the benefit certificate. Provided further, that $100 shall be paid the beneficiary where the death is the result of suicide. ’ ’
A copy of the constitution and by-laws is filed with the complaint as a part thereof, marked exhibit B. That Smith came to his death on September 28, 1905, by accidental means, to wit, that for some time prior to September 28, 1905, Smith had been in failing health and that by reason thereof became diseased and afflicted in mind; that the disease and affliction of the mind continued to grow worse until September 28, 1905, when the disease and affliction of mind had so far progressed that he was unable to comprehend the consequences of his actions and the moral character of his deeds; that on September 28, 1905, while in such diseased condition of mind, and unable by reason of the diseased condition of mind to comprehend the effects of his action and the moral character of his deeds, while handling a revolver which was loaded with powder and bullet, he discharged the revolver thereby inflicting a wound in his body from which
Exhibit A, referred to in the complaint, so far as material, is as follows:
“This * * * certifies that Charles W. Smith, of Dillsboro, Indiana, is a member of the Travelers’ Protective Association of America, and is entitled to all the benefits accruing from such membership, under the provisions of the constitution and by-laws of this association, subject to the conditions printed on the back hereof, and the application for membership, all of which are made a part of this certificate. Benefits in ease of death payable to Ida M. Smith, his wife. In witness whereof, this association has caused this certificate to be signed by its president and secretary, under the seal of the association, at St. Louis, Missouri, this 21st day of April, A. D., 1901.”
In the rules referred to in the certificate, it is provided, among other things, that members agree that the association shall not be liable “in case of injuries fatal or otherwise inflicted upon himself while sane or insane”. The constitution is also made an exhibit, and by its provisions “$100 shall be paid the beneficiary where the death is the result of suicide”.
The material parts of the third paragraph of complaint, are, that appellant is a mutual assessment life and accident association, organized and existing under and by virtue of the laws of the state of Missouri, and by reason of full compliance with the laws of the state of Indiana, relating to assessment life and accident associations, has been licensed to do business in the State of Indiana, as an assessment life association; that in Art. 8 of the articles of the incorporation of the appellant association, it is provided as follows: “The association shall have full power to make all by-laws and regulations necessary to carry out the objects herein-before set forth, and that are not inconsistent with these articles, and the laws of the state of Missouri.” That a
It is alleged .in each paragraph that Mr. Smith was a resident of Indiana at the time the contract was executed, and it is not shown that his residence was thereafter changed to Missouri.
Appellant answered in three paragraphs, the first a general denial, the second that the contract was an Indiana contract, and in no wise affected by the statutes of Missouri, and under the law of Indiana suicide is a valid defense, and that Smith committed suicide, and alleges payment of $100 under the terms of the contract, and a written release. The third paragraph alleges that Mr. Smith met his death by suicide; that payment of $100 and release under the terms of the contract was made and had without fraud, and that the statutes and decisions of Missouri are immaterial in the case; that appellant is not a mutual assessment company, but a fraternal beneficial association, organized under the laws of Missouri, setting out the history of the statutes of Missouri authorizing mutual assessment insurance companies, first enacted in 1887, and alleging that appellant was not organized under those statutes, but was organized under the provisions of a statute of Missouri enacted in 1879, as a fraternal benefit association not for profit, and by the statute “such fraternal benefit societies shall not in any way be subject to the insurance laws of the State, or be under the control or supervision of the insurance department of the State, nor pay any corporation or
The findings follow the complaint in the main, and among other findings, it is found that appellant is a “mutual assessment accident insurance company,” organized under the laws of Missouri, June 7, 1890, and authorized to do business in all the states and territories, with its principal office in St. Louis, Missouri, where the application was made, the first year’s premium paid, and the application accepted, and the certificate mailed to Mr. Smith in Indiana; that the organization maintained local posts of which all of its members were members, had a system of ritualistic work, and representative form of government, but there is no evidence that appellant used any ritual, or employed any ritualistic work in connection with its posts and business, and the membership is limited to persons engaged as traveling salesmen; that whenever the indemnity or benefit fund was reduced to less than $5,000 the board of directors had authority to levy an assessment not to exceed $2 per member, and the failure to pay the assessment within thirty days after its levying, forfeits membership.
Section 2, Art. 9, of the constitution, as set out in the complaint is found, as is also §7896 Rev. Stat. (Mo.) 1899, and the construction put on that section under the two Missouri cases, alleged in the complaint, and that they were the law of that state, and applied to the case; that prior to the year 1907 appellant had not applied to the auditor of state of Indiana to do business in this State, and had not prior thereto been licensed so to do, but did so in 1907 pursuant to §§4739-4764 Burns 1914, Acts 1897 p. 318, but during the years 1904 and 1905 did business in this State in the same line of business that it had done prior thereto.
The issuing of the certificate to Mr. Smith, with the text of the rule referred to in the certificate, and endorsed on the reverse thereof, is in part as follows: “The member
On October 14, 1905, one Chance, a son-in-law of the appellee addressed and mailed to the appellant, at appellee’s request, proofs of death of Mr. Smith in which the cause of death was given as suicide, with a letter to the effect that they were not advised.as to whether the company was liable, and requesting the company to do what it could. This letter appellant answered October 25, enclosing a copy of the constitution and by-laws, and calling attention to the suicide clause of the contract, being §2, p. 54 of the constitution and by-laws, and enclosing a draft for $100 payable to the order of appellee, which she endorsed and received the money on, and in consideration of the payment executed a release and discharge of all liability on account of the suicide of Mr. Smith. The transaction by which the money was paid and received and the release executed has never been in any manner rescinded or set aside. That at the time appellant paid appellee the $100, upon receipt of the letter of October 25, 1905, she read it and §2, p. 54 of the constitution and by-laws, and did then and there wholly believe, and rely upon said written statement in the letter, and did wholly believe and rely on the proviso in the section being applicable and enforceable as constituting the only liability against appellant, and while wholly believing and relying upon the contents of the letter aforesaid, and relying upon the section of the constitution aforesaid, she accepted and received the $100, and executed the release set forth above. That- at the time appellant sent the letter aforesaid and enclosed therein the $100, the appellant knew that the proviso in the section did not apply to the death of Smith, and was, in fact, wholly null and void and of no effect under the laws of the state
Upon the foregoing facts the court concludes as a matter of law, that appellee in this action is entitled to recover from and of appellant in this action in the sum of $4,900, and that appellee .should have judgment against appellant for the sum of $4,900. Appellant excepted to each of the findings, and to the conclusion of law. The court thereupon entered judgment for $4,900 and costs against appellant.
Appellant filed a motion for a new trial, and among others assigned each of the following reasons: That the decision of the court is not sustained by sufficient evidence, is contrary to law, and that the findings of fact are not sustained by sufficient evidence, and are contrary to law.
The courts of Missouri have held that the suicide section, §6945, supra, does not apply to fraternal beneficiary associations not organized for profit, and that such associations are not subject to the provisions of the general insurance laws. Tice v. Knights of Pythias (1907), 204 Mo. 349, 102 S. W. 1013; Westerman v. Supreme Lodge, etc. (1906), 196 Mo. 670, 94 S. W. 470, 5 L. R. A. (N. S.) 1114; Morton v. Royal Tribe, etc. (1902), 93 Mo. App. 78; Theobald v. Supreme Lodge, etc., supra. Also that it does apply to insurance on the assessment plan, written since the amendment of 1897, but not to that previously written, and also applies to accident insurance. Elliott v. Des Moines Ins. Co. (1901), 163 Mo. 132, 63 S. W. 400; Logan v. Fidelity &
There is no finding of fraud in the settlement or misrepresentation of fact, the representation as to the law was correct, and liability is not shown. As the case stands, the findings are too indefinite and uncertain to support the conclusions and judgment. The judgment is reversed, with instructions to the court below to sustain the motion for a new trial, and for further proceedings not inconsistent with this opinion.
Note.. — Reported in 107 N. E. 283. As to features of law specially applicable to mutual membership life or accident insurance, see 52 Am. St. 543. As to where contract of insurance is deemed to have been made, see 63 L. R. A. 834; 23 L. R. A. (N. S.) 968. For the conflict of laws as to insurance contracts, see 52 E. R. A. (N. S.) 275. As to whether a fraternal benefit society is a benevolent or charitable association within the exemption statutes, see 7 L. R. A. (N. S.) 380. For the statute prohibiting the defense of suicide in an action on an insurance policy, see 42 E. R. A. 260, 35 L. Ed. U. S. 1161. As to the effect of suicide of the insured on a life insurance policy containing no provision as to suicide, see 8 Ann. Cas. 162, 11 Ann. Cas. 779. See, also, under (1) 29 Cyc. 86; 11 Cyc. 750; (2) 29 Cyc. 230; 20 Cyc. 98; (3) 20 Cyc. 20; (4) 20 Cyc. 120; 29 Cyc. 244; (7) 38 Cyc. 1973.