Balch v. Federal Life Insurance Company

• Decision Date: 05 July 1924
• Docket Number: 25,386
• Parties: RUBY PAULINE BALCH, Appellant, v. FEDERAL LIFE INSURANCE COMPANY, Appellee
• Court: Kansas Supreme Court

227 P. 326

116 Kan. 560

RUBY PAULINE BALCH, Appellant, v. FEDERAL LIFE INSURANCE COMPANY, Appellee

No. 25,386

Supreme Court of Kansas

July 5, 1924

Decided July, 1924

Appeal from Johnson district court; JABEZ O. RANKIN, judge.

Judgment affirmed.

SYLLABUS

SYLLABUS BY THE COURT.

HEALTH AND ACCIDENT INSURANCE--Time Definitely Fixed in Policy for Its Termination--Renewal Permitted Only on Payment of Premium in Advance--Construction of Statutes. A health and accident insurance policy issued for a period of three months, to terminate at noon on a definite date named in the policy which provides that it may be renewed for another three months on the payment in advance of the premium for that length of time, but which provides that it shall continue in force only so long as the full premium shall be paid in advance, is not controlled by sections 40-332 and 40-333 of the Revised Statutes of 1923, and terminates without notice at the expiration of the time for which premium is paid.

George H. West, P. W. Croker, and H. J. Emerson, all of Kansas City, for the appellant.

J. E. McFadden, O. Q. Claflin, Jr., of Kansas City, C. W. Gorsuch, of Olathe, and Ross J. Ream, of Kansas City, Mo., for the appellee; C. A. Atkinson, of Chicago, Ill., of counsel.

OPINION

MARSHALL, J.:

The plaintiff sued to recover on a health and accident insurance policy issued to Clyde C. Balch, her husband, who was killed on September 30, 1921, by being struck by a railroad train. Judgment was rendered in favor of the defendant on its demurrer to the petition of the plaintiff, who appeals.

The policy was dated March 27, 1919, and contained, among others, the following provisions:

"This policy provides indemnity for loss of life, limb, sight or time by accidental means, and by loss of time by disease to the extent herein provided. Federal Life Insurance Company. . . .

"In consideration of the application herefor, . . . subject to all the limitations and conditions herein contained, does hereby insure Clyde Charles Balch, . . . against loss resulting from bodily injuries, effected, directly and independently of all other causes, through external, violent and accidental means . . . and against disability by disease as specified in the following schedules. . . .

"If default be made in the payment of the agreed premium for this policy, the subsequent acceptance of the premium by the company or by any of its duly authorized agents shall reinstate the policy, but only to cover accidental injury thereafter sustained and such sickness as may begin more than ten days after the date of such acceptance. . . .

"1. This insurance begins and ends at twelve o'clock noon, standard time of the place of residence of the insured.

"2. This policy, provided the first quarterly payment has been made to the company or its duly authorized agent, shall take effect at twelve o'clock noon standard time at the place of residence of the insured of the date hereof, and shall continue in force only so long as the full premiums hereon are paid in advance on or before twelve o'clock noon, said standard time, as required by the terms of this policy, to the company at its home office in Chicago, Illinois, or to the person designated in writing by the company to receive them, without notice. The company will not be liable for any disability occurring while any premium or part thereof is past due and unpaid."

"7. Strict compliance on the part of the insured and beneficiary with all the terms and provisions of this policy is a condition precedent to recovery hereunder, and any failure in this respect will forfeit to the company all rights to any indemnity. . . .

"9. In consideration of the payment of the premium of $ 10.80 for a term of three months, this policy takes effect at twelve o'clock noon standard time where the insured resides on the date of this policy, and terminates at noon on the 27th day of June, 1919, and may be renewed, subject to all provisions of this policy, from term to term by the payment of quarterly premiums of $ 8.30 each in advance."

The petition shows that the defendant refused to pay the loss on the policy because the premiums due on June 27,...