Carruth v. Ætna Life Ins. Co, (No. 3555.)

• Citation: 122 S.E. 226,157 Ga. 608
• Decision Date: 16 February 1924
• Docket Number: (No. 3555.)
• Parties: CARRUTH. v. ÆTNA LIFE INS. CO. et al.
• Court: Supreme Court of Georgia

157 Ga. 608

122 S.E. 226

CARRUTH.

v.ÆTNA LIFE INS. CO. et al.

(No. 3555.)

Supreme Court of Georgia.

Feb. 16, 1924.

(Syllabus by the Court.)

Error from Superior Court, Troup County; C. E. Roop, Judge.

Action by Lillian Carruth, administratrix of the estate of Ethel Harmon, deceased, against the Ætna Life Insurance Company and another. Judgment for defendants, and plaintiff brings error. Reversed.

Mrs Lillian Carruth, as administratrix of the estate of Ethel Harmon, filed a petition against the Ætna Life Insurance Company and the Lanette Cotton Mills. Both defendants are foreign corporations, but are alleged to have an agent and office in Troup county, Ga., for the purpose of transacting business. The action is based on the fact that the Ætna Life Insurance Company insured the employees of the Lanette Cotton Mills, including the decedent, under group policy No. 379, and that Ethel Harmon had departed this life on September 22, 1918, holding a "certificate" No. 937 under the provisions of the policy issued to the Lanette Cotton Mills. The policy and certificate both bear as of October 25, 1917. A copy of the certificate was attached to the original petition, and by amendment the plaintiff added a copy of the policy and the application therefor. The policy of insurance is as follows:

"The Ætna Life Insurance Company of Hartford, Connecticut (herein called the company), hereby agrees with the Lanette Cotton Mills of Lanette, county of Chambers and state of Alabama (herein called the employer), to pay the amount stated as the sum insured upon any card attached hereto bearing the stamp seal of the company, which card forms a part hereof, less any unpaid premium hereon for the current premium paying period, on due proof of the death of the person described on said card (herein called the insured) within the term of one year from five o'clock p. m. of the date hereof, ending at five o'clock p. m. on the twenty-fifth day of October. 1918; provided that the insurance on such life has not been previously terminated and such card is then returned to the company. Any sum payable by the company as a death claim shall be paid to the beneficiary indicated as such in the application for this insurance. The foregoing agreement is made in consideration of the application for this policy, which application is hereby made a part of this contract, and a copy of which is attached hereto, and in further consideration of the premium of forty-four hundred, fifty-four, and 53/100 dollars to be paid upon delivery of this policy. The pol-icy is issued and accepted subject to all the conditions, benefits, and privileges described on the subsequent pages hereof, and which are hereby made a part of this contract.

"In witness whereof the said Ætna Life Insurance Company has by two of its executive officers signed this contract in the city of Hartford and state of Connecticut, this twenty-fifth day of October, 1917."

There are various stipulations as to renewal, payment of premiums, incontestability, additions and amount of insurance, termination for discontinued employment, settlement of premiums, etc., which are immaterial in this case. In the application of the Lanette Cotton Mills (which is made a part of the policy) for group life insurance upon the annual renewable-term plan, renewable for 49 years, with premiums payable annually, upon the lives of its employees, it is stated that the said employees are engaged in the kind of work usual to cotton mill employees. The application proceeds as follows:

"The attached descriptive list of the persons whose lives are to be insured by said policy described [describes] each and all the employees of the employer, except the following, who are accepted for the reason stated below: No exceptions.

"Schedule of insurance: All employees in their first year of service insured for $300.00. All employees in their second year of service insured for $350.00. All employees in their third year of service insured for $400.00. All employees in their fourth year of service insured for $450.00. All employees in their fifth year and more of service insured maximum $500.00. Beneficiary as per company's list form No. 801 attached hereto: Lanette Cotton Mills.

"It is requested that any sum payable under this policy as a claim shall be paid to the Lanette Cotton Mills, employer, as beneficiary. The above schedule shall apply to all employees on pay roll at this date. Increase as per above schedule is desired to apply both for services already rendered and for services rendered in the future. New employees engaged after this date shall not be insured until after they have been in the service for thirty days. Rate classification, schedule C. Said persons proposed to be insured are now working for the employer on full time and for full pay, and are all in good health at the present time to the best of applicant's knowledge and belief.

"Note.—It is not expected to have this insurance cover any person who is now temporarily absent from regular duties on account of poor health; but any such person may be hereafter insured in accordance with the conditions of the policy hereby applied for, if the company is notified that such person has recovered.

"Signed at West Point, State of Georgia. This 25th day of October, 1917. Lanette Cotton Mills, Geo. H. Lanier, Vice President & Gen. Mgr."

In the fourth paragraph of the petition the plaintiff alleged that the Insurance was given to the deceased Ethel Harmon in considera tion of the continued and faithful services of the deceased, and shows that the Lanette Cotton Mills delivered a certificate of insurance under said group policy to Ethel Harmon and other employees of the said mill, in order to make their employment with the mill more attractive to them and in appreciation of the employees' faithful service to said mill. It is alleged that at the time of the issuance of the policy and certificate of insurance Ethel Harmon was an employee of the defendant mill company, and continued in that capacity until May——, 1918, when she was taken sick in the mill and carried to her home; that at this time she was too sick to obtain written consent; that the superintendent had actual notice of her sickness; and that after having been sick from May ——, 1918, until September 22, 1918, she died on the latter date. In another paragraph it is alleged that Ethel Harmon had never been dismissed from the employment of the mill, and had worked faithfully, and had never quit her employment, and that at the time she had to leave the mill she only left temporarily, hoping soon to regain her health; and that her sickness was well known to the mill company, the overseer, and many other officers inquiring frequently as to her condition. She left neither husband nor child and neither father nor mother. The petitioner was appointed temporary administratrix on her estate on August 15, 1921. The certificate attached to the petition is as follows:

"The Ætna Life Insurance Company, of Hartford, Conn., has insured the lives of certain employees of the Lanette Cotton Mills, the undersigned employer, by a policy of insurance issued and delivered to said employer. Under and subject to the terms and conditions of said policy, and the application therefor, the life of Ethel Harmon, an employee, is insured in the sum of three hundred dollars.

"The Ætna Life Insurance Company's policy expressly provides that the above-described insurance shall cease whenever the said employee leaves the service of said employer.

"Lanette Cotton Mills, by Geo. H. Lanier, Vice President. Geo. S. Harris, Superintendent."

"Date October 25, 1917. Certificate No. 937."

As a part of the certificate is a statement of the benefits as set forth in the application, and an address, "To our Employees, " as follows:

"This certificate of insurance is presented to you in appreciation of your earnest and faithful service, and as an expression, in substantial form, of the value this company places upon your loyal co-operation. By special arrangement with the Ætna Life Insurance Company we have purchased a group life insurance policy to cover certain employees of this company, while in our service. Your life is now insured in accordance with the schedule on the opposite page, and you will note that the amount of the insurance automatically increases each additional year of continuousservice rendered, until the maximum of $500.00 is attained, Provision is thus made for the relief...