Alfa Life Ins. Corp. v. Colza
Decision Date | 09 May 2014 |
Docket Number | 1111415. |
Citation | 159 So.3d 1240 |
Parties | ALFA LIFE INSURANCE CORPORATION and Brandon Morris v. Kimberly COLZA. |
Court | Alabama Supreme Court |
William P. Gray Jr., and Douglas N. Robertson of Gray & Associates, L.L.C., Birmingham, for appellants.
Leah O. Taylor and Rhonda P. Chambers of Taylor & Taylor, Birmingham; and Jeremy P. Summers, Birmingham, for appellee.
Drayton Nabers, Jr., of Maynard, Cooper & Gale, P.C., Birmingham, for amicus curiae Business Council of Alabama, in support of the appellants.
Christina M. Bolin of Alford Bolin Dowdy, LLC, Mobile; Melody H. Eagan of Lightfoot, Franklin & White, LLC, Birmingham, president, Alabama Defense Lawyers Association; and Sharon D. Stuart of Christian & Small, LLP, Birmingham, chairperson, amicus curiae committee for amicus curiae Alabama Defense Lawyers Association in support of the appellant.
Matthew C. McDonald of Jones Walker, Mobile, for amicus curiae Alabama Civil Justice Reform Committee, in support of the appellant.
Alfa Life Insurance Corporation (“Alfa”) and Brandon Morris, an agent for Alfa, appeal a judgment entered against them following a jury verdict for Kimberly Colza, the widow of Dante Colza. We reverse the judgment and render a judgment for Alfa and Morris.
On September 2, 2010, Morris met with Dante to assist him in completing an application for a life-insurance policy in the amount of $150,000. Kimberly and Justin Morton, an employee of Dante's, were also present at the meeting. The application process for an Alfa life-insurance policy consists of three parts: the applicant's completion of an application agreement, the applicant's answering various health questions before a medical examiner, and the medical examiner's report. Morris testified that he asked Dante the questions in the application agreement and then typed the answers on the application form on his laptop computer. Although the evidence is disputed as to whether Morris asked Dante question 16(g)—whether Dante had had a moving traffic violation, a driver's license suspended, or an accident in the prior three years—it is undisputed that Morris entered a checkmark in the “No” box by that question. The evidence indicated that Dante applied for the Preferred Tobacco premium rate.2 Dante named Kimberly as the beneficiary under the policy. Disputed evidence was presented as to whether Dante himself signed the application agreement.
At the close of the meeting, Morris provided Dante and Kimberly with a hard-copy document entitled “Applicant's Copy of Notices—Authorization—Agreement—Receipt Signed Electronically” (hereinafter referred to as “the application agreement”). The relevant portion of the application agreement stated:
The application agreement completed by Dante referenced another document entitled “Conditional Receipt,” which stated in relevant part:
(Capitalization in original.) Conflicting evidence was presented at trial as to whether Morris provided Dante and Kimberly with a hard copy of the conditional receipt; however, Kimberly acknowledges that she received an identical conditional receipt when she applied for her own life-insurance policy approximately two weeks before Dante applied for his.
At the close of the meeting, Kimberly wrote a check payable to Alfa for $103.70, the monthly Preferred Tobacco premium rate. Kimberly testified at trial that Morris informed them that Dante would be covered as soon as they gave Morris the check. Morris submitted Dante's application to Alfa on September 3, 2010.
Dante was examined by the medical examiner on October 15, 2010.3 During the examination, Dante informed the medical examiner that his family had a history of heart disease and that he had had moving traffic violations within the past five years.4 On October 16, 2010, the day after he had his medical examination, Dante was killed in an accident. Two days later, Alfa received the medical examiner's report, which indicated that Dante's family had a history of heart disease, that Dante's cholesterol was above 255, and that Dante had had moving traffic violations in the past five years.5
In light of Dante's high cholesterol level and his family history of heart disease, the Alfa underwriters determined that Dante was not eligible for the Preferred Tobacco rate for which he had applied; rather, the proper classification for Dante would have been the Standard Tobacco rate, which had a higher premium. Additionally, in light of Dante's moving-vehicle violations, Dante was a greater risk to insure and a “rate-up” of $2.50 per $1,000 worth of coverage was required. The...
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