All States Life Ins. Co. v. Steward

• Court: Supreme Court of Alabama
• Citation: 242 Ala. 258,5 So.2d 784
• Docket Number: 3 Div. 366.
• Parties: All States Life Ins. Co. v. Steward.
• Decision Date: 22 January 1942

5 So.2d 784

242 Ala. 258

All States Life Ins. Co.
v.
Steward.

3 Div. 366.

Supreme Court of Alabama

January 22, 1942

[242 Ala. 259] Appeal from Circuit Court, Butler County; A.E. Gamble, Judge. [5 So.2d 785]

Calvin Poole, of Greenville, for appellant.

T.W. Thagard and Powell & Hamilton, all of Greenville, for appellee.

GARDNER, Chief Justice.

Suit upon a certificate of insurance issued to Alfred C. Steward under the provisions of a group insurance policy issued to W.T. Smith Lumber Company of which said Steward was an employee. The policy contract is to be found upon examination of the provisions of the certificate in connection with those of the "Master Policy" and application therefor, and the individual application of the insured person. Page v. Prudential Insurance Co., 231 Ala. 405, 165 So. 388.

This action is by the widow of said Steward, the beneficiary named in the certificate, and seeks to recover permanent total disability benefits alleged to have accrued because of the total permanent disability of plaintiff's deceased husband. The provisions of the benefit certificate for the payment of permanent total disability benefits are as follows: "Permanent Total Disability Benefits: Upon due proof that since the payment of the initial premium upon this contract, before a default in the payment of any subsequent premium, and before the anniversary of this contract nearest the sixtieth anniversary of the date of birth, the Insured has become wholly disabled by [242 Ala. 260] bodily injury or disease and will be continuously and wholly prevented thereby for life from engaging in any occupation or employment for wage or profit, the Company will waive the payment of any premiums which may fall due on this contract for such employee during such disability and will pay in full settlement for such Employee under this contract the amount of insurance in force hereunder at the time of the receipt of due proof of such disability in a fixed number of installments chosen by the insured from the following table, the first installment to be paid immediately upon receipt of due proof of such disability."

And the pertinent provisions of the group policy under the terms of which the certificate was issued are as follows: "Termination of Insurance. In the event any Employee shall, at the time of termination of employment, be wholly disabled, and prevented by bodily injury or disease from engaging in any occupation or employment for wage or profit, premiums being duly paid as provided for hereunder, the Insurance [5 So.2d 786] will remain in force as to such Employee during the continuance of such disability for the period of three months from the date upon which the employee ceased to work and thereafter during the continuance of such disability and while this policy shall remain in force until the Employer shall notify the Company to terminate the insurance as to such Employee. Nothing in this paragraph contained shall limit or extend the permanent total Disability Benefit to which an Employee shall become entitled under his certificate."

The testimony is without material conflict. Insured Steward was an employee of W.T. Smith Lumber Company and as such was entitled to insurance benefits under the group policy, and the beneficiary certificate was issued to him; the premiums were paid to maintain the certificate in force until his employment was terminated, which event occurred near April 1, 1936; at the time of his termination of employment Steward was disabled within the meaning of the certificate and remained so to the date of his death in June, 1939; after the termination of his employment no premiums were paid by the insured or by anyone for him, but the policy was maintained in force by payment of the premium on March 1, 1936 until April 10, 1936 and was so in force when his employment terminated by reason of his disability; Steward lived after the termination of his employment in April, 1936 for more than three years, having died June 11, 1939; pursuant to policy provisions the Smith Lumber Company notified appellant insurance company of the termination of employment of insured about May 1st, 1936, and the certificate of insurance was cancelled on appellant's records on or about May 10, 1936; the group policy was cancelled in January, 1939, and no premiums paid by the Lumber Company on the group policy after that date; no notice of disability was ever furnished to appellant company during the life time of the insured Steward, the first notice being by letter of attorney for appellee dated July 17, 1939 and proofs of claim furnished August 31, 1939.

The foregoing statement should suffice for this case with little discussion to follow. Language of like import as that embraced in the policy contract here sued upon was interpreted as clearly requiring due proof of disability as a condition precedent to the right to recover. Our decisions...