American Ins. Union v. Wilson

• Decision Date: 07 February 1927
• Docket Number: (No. 165.)
• Citation: 291 S.W. 417
• Parties: AMERICAN INS. UNION v. WILSON.
• Court: Arkansas Supreme Court

Page 417

291 S.W. 417

AMERICAN INS. UNION v. WILSON.

(No. 165.)

Supreme Court of Arkansas.

February 7, 1927.

Rehearing Denied March 14, 1927.

Appeal from Circuit Court, Calhoun County; W. A. Speer, Judge.

Suit by C. C. Wilson against the American Insurance Union. From judgment for plaintiff, defendant appeals. Judgment reversed, and cause dismissed.

C. C. Wilson sued the American Insurance Union to recover the sum of $636.65, alleged to be due him upon a life insurance policy. The suit was defended upon the ground that the defendant only owed the plaintiff the sum of $363.35 under the terms of the policy; that the defendant had paid the plaintiff this sum of money; and that the latter had accepted it as payment in full of his claim against the former.

The record shows that W. A. Wilson obtained a benefit certificate of life insurance from the Mutual Relief Union of Ft. Smith, Ark., on October 10, 1916. On April 1, 1918, said company merged with the Home Protective Association of Springdale, Ark., while W. A. Wilson was still a member. By the terms of the merger, the Home Protective Association assumed liability under the certificates of the Mutual Relief Union. On November 1, 1918, the Home Protective Association was merged into the American Insurance Union. A contract was entered into by these two companies, which provided, among other things, that the American Insurance Union should not be liable to the holders of benefit certificates in the Home Protective Association in excess of the net amount realized from one assessment on the members of the roll of which he was a member in the Home Protective Association, after deducting his proportionate share of the expense of operation.

According to the evidence of the defendant, a copy of this agreement fixing the liability of the American Insurance Union to the owners of benefit certificates of the Home Protective Association was mailed to the owners of certificates in the Home Protective Association. The American Insurance Union sent a copy of said contract to W. A. Wilson for the purpose of attaching the same to his benefit certificate and becoming a part thereof.

According to the testimony of C. C. Wilson, W. A. Wilson was his father, and lived with him at the time the defendant claims to have sent said contract to be attached to his benefit certificate. The plaintiff opened all his father's mail, and knows that he did not receive said contract.

After W. A. Wilson died, proof of his death was made to the American Insurance Union by C. C. Wilson, the beneficiary named in the policy. On February 21, 1923, the American Insurance Union mailed a check from its home office at Columbus, Ohio, to C. C. Wilson of Tinsman, Ark., the body of which is as follows:

"Pay to the order of C. C. Wilson, son $363.35, the sum of $363 and 35 cents. For amount due C. C. Wilson, beneficiary of W. A. Wilson, certificate No. 10 H. P. 185, chapter No. 2200, Springdale, Ark., said amount being in full and satisfactory settlement of all claims accrued or to accrue."

This check was inclosed with a letter of the same date which is as follows:

"In re payment of benefits due under certificate held by W. A. Wilson.

"Inclosed herewith you will find our voucher No. 6605 for $363.35, payment in full for benefits due under certificate No. 10 HP 185 held by W. A. Wilson.

"The Home Protective Association of Springdale, Ark., was taken over by the American Insurance Union in January, 1919. The rider contract attached to the certificate of W. A. Wilson, in which you are named as beneficiary, provides in paragraph 3 of said rider that the American Insurance Union is not to be liable under the attached certificate in excess of the amount realized from one assessment on the members of the roll in which he was a member in the Home Protective Association, after deducting his proportionate share of the expense of operation.

"A copy of the rider contract is herewith inclosed, and your special attention is called to the marked portion thereof. Said member died on the 16th day of December, 1922. The total amount of the assessment received from the members of roll No. 10 for the said month of December, 1922, the month in which the member died, amounts to $436.02, less the reduction of one-sixth allowed under said merger contract for expenses, leaves the balance of $363.35, the amount due you as beneficiary under said certificate.

"Please sign the inclosed receipt and return same to us in the inclosed self-addressed envelope."

C. C. Wilson received the check and the letter accompanying it, and wrote to the American Insurance Union that he could not accept the check in full payment of the amount due him under the benefit certificate, but that he would accept it as part payment due on his policy of $1,000, and on the same day cashed the check and converted the proceeds to his own use. This letter was written about five days after he had received the check from the defendant. When the...