Albro v. Manhattan Life Ins. Co.

• Decision Date: 23 December 1902
• Docket Number: 1,247.
• Citation: 119 F. 629
• Parties: ALBRO v. MANHATTAN LIFE INS. CO.
• Court: U.S. District Court — District of Massachusetts

119 F. 629

ALBRO v. MANHATTAN LIFE INS. CO.

No. 1,247.

United States Circuit Court, D. Massachusetts.

December 23, 1902

John W Cummings, for plaintiff.

Crapo Clifford & Clifford, for defendant.

PUTNAM Circuit Judge.

The question now before us arises on the following portion of section 73, c. 522, Acts Mass. 1894, namely:

'In any claim arising under a policy which has been issued in this commonwealth by any life insurance company, * * * the statements made in the application as to the age, physical condition, and family history of the insured shall be held to be valid and binding upon the company: provided however, that the company shall not be debarred from proving as a defense to such claim that said statements were willfully false, fraudulent or misleading: and provided further, that every policy which contains a reference to the application of the insured, either as a part of the policy or as having any bearing thereon, must have attached thereto a copy of the application, and unless so attached the same shall not be considered a part of the policy, or received in evidence. Each application for such policy shall have printed upon it in large bold faced type the following words: 'Under the laws of Massachusetts, each applicant for a policy of insurance to be issued hereunder is entitled to be furnished with a copy of this application attached to any policy issued thereon."

With reference to the construction of this statute and its application to this case, the counsel on either side have cited a number of decisions. We have examined them all, but refer only to such of them as seem to us important.

The general history of the legislation which led up to this enactment, and the fact that the part of it with which we are concerned applies to all policies governed by the law of Massachusetts which contain references to the application within its language, were explained in Considine v. Insurance Co., 165 Mass. 462, 43 N.E. 201.

The question before us arises as follows: The plaintiff declared on a policy issued by the defendant corporation. The defendant filed an answer containing four independent paragraphs, the first and second of which rely directly on misstatements contained in the application in which it is alleged the policy issued, and also they allege that a correct copy of the application was attached to the policy as provided by the statute to which we have referred. The third paragraph adopts the first and second paragraphs, and alleges that the delivery of the policy was obtained by willful fraud, in the answers made in the application already referred to. The fourth paragraph in like manner adopts the first and second paragraphs, and alleges that the statements in the application referred to were false, fraudulent, and misleading, and that the truth in reference thereto would have increase the risk of loss, so that thereby, and by the express terms and conditions of the policy, no contract of insurance binding on the defendant was made.

There is no allegation in the answer, or in the amendment thereto, to which we will refer, charging fraudulent statements, except statements in the application itself. By an amendment to the answer the defendant admitted that the copy of the application annexed to the policy was incorrect in leaving blank statements as to the age of the applicant's mother, her health, and the cause of her death. The blanks in the application which according to the copy had not been filled were, in fact, filled with facts which were favorable to the applicant, but which the answer admits were truly stated. Therefore, there is nothing in these omissions from the copy of the application which appertain to anything which could injuriously affect the rights of either party as the case is now presented.

The plaintiff demurred to the answer, assigning, among other reasons of demurrer, that it appeared thereby that no correct copy of the application was annexed to the policy.

The answer admits that the applicant lived in Massachusetts; that the defendant is a life insurance company legally admitted to do business in that state; that the application for the policy was made in writing to the representative of the defendant corporation at Fall River; that the defendant did issue to the applicant its policy of insurance by manual delivery thereof at Fall River by the defendant's agent to the applicant; and that the first premium was paid by the applicant to the defendant's agent, also at Fall River.

Beyond the matters which we have stated, there is nothing in the pleadings to show that the contract for insurance was not completed within Massachusetts. Notwithstanding this, the defendant argues that the contract was completed in New York and that the usual provisions of life insurance policies, which are found in this policy, that the contract should not go into effect until the policy had been delivered and the premium paid relate only to the punctum temporis when the insurance is to commence. It is true that a contract of insurance might be made which would be in all respects binding on the parties, although the policy would not become effective-- that is to say, the insurance...