Boward v. Bankers' Union of the World

• Decision Date: 05 May 1902
• Citation: 94 Mo. App. 442,68 S.W. 369
• Parties: BOWARD v. BANKERS' UNION OF THE WORLD.
• Court: Missouri Court of Appeals

68 S.W. 369

94 Mo. App. 442

BOWARD v. BANKERS' UNION OF THE WORLD.

Court of Appeals at Kansas City, Missouri.

May 5, 1902.

INSURANCE — MUTUAL BENEFIT SOCIETY — BY-LAWS — POLICY — SUSPENSION — REINSTATEMENT — PAYMENT OF ARREARAGES — AGENCY — EVIDENCE — GOOD HEALTH.

1. Where the by-laws of a mutual benefit organization provide for monthly dues, which are payable on the first day of the month, but for the nonpayment of which a member does not forfeit his rights if paid on or before the first day of the following month, and the policy makes the by-laws a part of the contract, and provides that if he fails to pay any dues when due all benefits under the policy shall thereupon cease, such condition of the policy, in so far as inconsistent with the by-laws, is unauthorized and void, and a member is not suspended for nonpayment of dues until the first day of the month following that for which the dues are assessed.¹

2. Where the by-laws of a mutual benefit organization provide that any member suspended for nonpayment of dues may be reinstated by the supreme secretary, if in good health, by payment of all arrearages within 60 days from the date of suspension, it is the duty of the

officer to reinstate a member who makes payment within such time while in good health, though when thereafter called on for a health certificate he is sick, and unable to furnish it, the by-laws not requiring such certificate unless a member was suspended more than 60 days.

3. Where the by-laws of a mutual benefit organization provide only for monthly dues, and the charter is not in evidence, evidence that a member was in arrears, and suspended for nonpayment of dues for a fraction of a month, was properly rejected, in an action on a policy issued to such member.

4. Where, in an action on a policy issued by a mutual benefit organization, there was no evidence that anything was due from the member for initiation fees, it was not error to exclude a question asking if witness could tell the amount due for such fees.

5. Where the by-laws of a foreign mutual benefit organization designate the secretary of the local lodge as the only one to whom dues of suspended members may be paid, such secretary, in receiving such payments, acts as agent of the organization, though the by-laws and his receipt state that he acts as agent of the insured.

6. Where a suspended member of a mutual benefit organization took the steps which entitled him to reinstatement, but reinstatement was wrongfully refused by the organization, the beneficiary under his policy may recover, though he appeared to be suspended on the books at the time of his death.

7. Where a suspended member of a mutual benefit society, who was entitled to reinstatement if in good health on payment of arrearages, had a bad cold, and quit work, 3 days before he paid such arrearage, and his wife testified that he was taken sick 14 days thereafter, the court properly refused to direct a verdict for defendant on the ground that he was not in good health at the time such payment was made.

Appeal from circuit court, Linn county; John P. Butler, Judge.

Action by Sophronia E. Boward against the Bankers' Union of the World. From a judgment for plaintiff, defendant appeals. Affirmed.

Frank L. Weaver and Charles K. Hart, for appellant. Johnson & Bresnehen and Harry K. West, for respondent.

BROADDUS, J.

The defendant, a mutual benefit organization, on the 20th day of June, 1900, issued to Charles F. Boward, plaintiff's husband, two certificates of insurance, for the benefit of the plaintiff, — one for the sum of $1,000, and the other for the sum of $250, to be paid to her within 60 days after satisfactory proof of the death of said insured. Said Charles F. Boward died on the 17th day of March, 1901, and satisfactory proof of his death was duly filed with the defendant in accordance with the terms of the certificate, but the defendant refused to pay plaintiff the insurance money, on the alleged ground that the deceased had been suspended for failure to pay the monthly dues to the defendant as provided by the contract, and was at the time of his death suspended from the benefits of the defendant's order. By the terms of the certificate, all the by-laws, as well as the application for a certificate, with the certificate of the medical examiner, are made a part of the contract of insurance. On the back of each of these policies there is a statement that "it is agreed by and between the parties to this contract that, should any member fail to pay any premium, dues, or charges upon said member, as required by the constitution and by-laws of the Union, promptly and when due, such membership, and all benefits under this policy, shall thereupon cease." Under said by-laws each member stands to owe on the first day of each month what is known as a monthly due, which is also payable on said day, for the nonpayment of which, however, a member does not lose his standing or forfeit his rights if the same is paid by him on or before the first day of the succeeding month. The facts in the case are that the deceased did not pay his dues for the month of July, or the succeeding month of August, and that therefore, by the terms of the order, he stood suspended. Under defendant's by-laws, "any member suspended for nonpayment of premiums or dues may be reinstated by the supreme secretary, if in good health and not engaged in any of the prohibited occupations, by payment of all arrearages of every kind within sixty days from the date of suspension." It is conceded that the deceased stood suspended on and after the 1st day of August, 1900, for the nonpayment of his dues for the month of July preceding. On the 17th day of September following he paid to the local secretary of the organization of Brookfield, Mo., of which he was a member, the sum of $4, to apply on his dues, which was more than sufficient to discharge the dues for the months of July and August. The local secretary did not send the money so paid him to the principal organization, but notified the supreme secretary thereof of the payment to him. On the 7th day of October, 1900, the said supreme secretary wrote the secretary of the local lodge that he would not receive the money and reinstate the deceased unless he would furnish a certificate of good health by some reputable physician. This the insured could not do, as he was sick at that time; therefore at his death, formally at least, he was suspended from the benefits of the association. The plaintiff claims that, notwithstanding the supreme secretary refused to receive the money paid to the local secretary, and refused to reinstate the deceased, he was entitled to be so reinstated, and in the eye of the law under his contract he was legally a member, and that under said by-laws the deceased was entitled to be reinstated, if within 60 days, if in good health, he paid all arrearages of...