Cauley v. Gen. Am. Life Ins. Co
| Decision Date | 09 April 1941 |
| Docket Number | No. 377.,377. |
| Citation | 14 S.E.2d 39,219 N.C. 398 |
| Court | North Carolina Supreme Court |
| Parties | CAULEY. v. GENERAL AMERICAN LIFE INS. CO. |
Appeal from Superior Court, Lenoir County; W. J. Bone, Judge.
Action by Ruth Sutton Cauley against the General American Life Insurance Company to recover on a certificate of life insurance issued to David P. Cauley and payable to plaintiff as beneficiary. From a judgment of nonsuit, plaintiff appeals.
Judgment reversed.
Civil action to recover on certificate of group insurance issued by defendant to David P. Cauley, as a member of the Federal-Postal Employees Association of Denver, Colorado, and payable to plaintiff as beneficiary.
The certificate in suit, Certificate No. 39628, provides that, subject to all the terms and conditions of Group Policy No. IN-204164, issued by the defendant and delivered to The Federal-Postal Employees Association of Denver, Colorado: "The life of David P. Cauley (the member) is Insured for the sum of Three Thousand Dollars Payable to Ruth Sutton Cauley, wife, beneficiary, if death shall occur during the continuance of said Group Life Policy and while the Member is a Member in good standing in the Association and the insurance represented by this certificate is in force."
The insured died on September 15, 1939. It is conceded that his death occurred during the continuance of the group policy and while he was a member in good standing in the Association. In the court below, the case was made to turn on whether the insurance represented by the certificate in suit was in force at the time of the death of the insured.
A semi-annual premium of $21.38 was due on August 1, 1939. Within the grace period thereafter, to wit, on August 30, the insured sent the Association his check for the amount of said semi-annual premium, drawn upon the First-Citizens Bank & Trust Company of Kinston, N. C. This check was received by the Association in Denver on September 5, and conditional receipt was issued therefor, reciting that "such tender of payment is received by the Association for collection only and subject to final cash returns to the Association".
The check reached the bank in Kinston on September 12, and was returned marked "not sufficient funds".
Notice of dishonor reached the Association in Denver on September 15, several hours after the death of the insured. A letter addressed to the insured was written on the same day enclosing the remittance with the statement that it had been returned for insufficient funds, and continuing: "The grace period has expired, however, if we receive your remittance by return mail we may be able to secure your reinstatement without a new application."
The insured customarily paid his premiums by check.
The insured deposited $21.38 in the First-Citizens Bank & Trust Company on September 1, 1939, to cover his insurance premium check, and would have had thisamount to his credit when said check was presented, but for a debit of $5.25 charged against his account on September 4. The plaintiff alleges that this debit was unauthorized, as it was made without the knowledge or consent of David P. Cauley, and resulted from the changing of a check in this amount drawn on the Branch Banking & Trust Company on July 13, 1939, and made payable to H. Stadiem. This check apparently bears the...
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...846, 169 S.E. 446; Martin v. New York Life Insurance Company, 30 N.M. 400, 234 P. 673, 40 A.L.R. 406; Cauley v. General American Life Insurance Company, 219 N.C. 398, 14 S.E.2d 39; Brady v. Northwestern Masonic Aid Association, 190 Pa. 595, 42 A. Under the foregoing authorities Policy 872 w......
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Thomas v. Ray, 8311SC911
...penny in premiums to GAIC under the renewal policy. Giving a worthless check does not constitute payment. Cauley v. Gen'l American Life Ins. Co., 219 N.C. 398, 14 S.E.2d 39 (1941). Unless payment of the premium is waived, it is a condition precedent to coverage. Engelberg v. Home Ins. Co., ......
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Gen. Am. Life Ins. Co v. Stadiem, 377.
...after two trials in the Superior Court of Lenoir County and two appeals to the Supreme Court of North Carolina (See Cauley v. Ins. Co., 219 N.C. 398, 14 S.E.2d 39; Id., 220 N.C. 304, 17 S.E.2d 221), the beneficiary recovered the amount of the policy. 9. That plaintiff is entitled to recover......
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General American Life Ins. Co. v. Stadiem
...and after two trials in the Superior Court of Lenoir County and two appeals to the Supreme Court of North Carolina (See Cauley v. Ins. Co., 219 N.C. 398, 14 S.E.2d 39; 220 N.C. 304, 17 S.E.2d 221), the beneficiary recovered the amount of the policy. 9. That plaintiff is entitled to recover ......