Continental Life Ins Co of Hartford, Conn v. Chamberlain

• Decision Date: 25 November 1889
• Parties: CONTINENTAL LIFE INS. CO. OF HARTFORD, CONN., v. CHAMBERLAIN
• Court: U.S. Supreme Court

132 U.S. 304

10 S.Ct. 87

33 L.Ed. 341

CONTINENTAL LIFE INS. CO. OF HARTFORD, CONN., v. CHAMBERLAIN.

November 25, 1889.

J. L. Carney, for plaintiff in error.

D. D. Chase, for defendant in error.

Mr. Justice HARLAN, after stating the facts in the foregoing language, delivered the opinion of the court.

This action is upon a policy of insurance on the life of Richard Stevens, the intestate of the defendant in error. There was a verdict and judgment against the insurance company.

The policy recites that 'it is issued and accepted upon the condition that the provisions and requirements printed or written by the company upon the back of this policy are accepted by the assured as part of this contract as fully as if they were recited at length over the signatures hereto affixed.' The signatures here referred to are those of the president and secretary of the company.

The application for insurance was taken in Iowa by one Boak, a district agent of the company in certain named counties of the state, 14 in number, having written authority 'to prosecute the business of soliciting and procuring applications for life insurance policies within and throughout said territory.'

Among the numerous questions propounded in the application was the following: 'Has the said party [the applicant] any other insurance on his life? If so, where and for what amounts?' The answer as it appears in the application is: 'No other.' That answer, as were all the answers to questions propounded to the applicant, was written by the company's agent, Boak. In reference to the above question and answer, the latter testified: 'I asked him [Stevens] the question if he had any other insurance, as printed in the application and as we ask every applicant, and he told me he had certain certificates of membership with certain cooperative societies, and he enumerated different ones, and said he did not know whether I would consider that insurance or not. I told him emphatically that I did not consider them insurance, and we had considerable conversation about it. He wanted to know my authority for saying I did not consider them insurance. I gave him my authority,—gave him my reasons,—and he agreed with me that these co-operative societies were in no sense insurance companies, and in that light I answered the question 'No.' Question. Did you tell him at the time that the proper answer was 'No,' after he had stated the facts? Answer. I did. Q. Who wrote the answer in there? A. I did.'

The application also contained these clauses: 'And it is hereby covenanted and agreed that the statements and representations contained in this application and declaration shall be the basis of and form part of the contract or policy of insurance between the said party or parties signing this application and the said Continental Life Insurance Company, which statements and representations are hereby warranted to be true, and any policy which may be issued upon this application by the Continental Life Insurance Company, and accepted by the applicant, shall be so issued and accepted upon the express condition that if any of the statements or representations in this application are in any respect untrue, or if any violation of any covenant, condition, or restriction of the said policy shall occur on the part of the party or parties signing this application, then the said policy shall be null and void, and all moneys which may have been paid on account of said policy shall be forfeited to the said company.

'And it is hereby further covenanted and agreed that the officers of the said company, at the home office of the said company, in Hartford, Conn., alone shall have authority to determine whether or not the policy of insurance shall be issued on this or any application, or whether or not any insurance shall take effect under this or any application.

'And it is hereby further covenanted and agreed that no statements or represent tations made or given to the person soliciting this application for a policy of insurance or to any other person shall be binding on the said company, unless such statements or representations be in writing in this application when the said application is received by the officers of the said company at the home office of the said company, in Hartford, Conn.'

Among the 'Provisions and Requirements' printed on the back of the policy are the following:

'(11) The contract between the parties hereto is completely set forth in this policy, and the application therefor, taken together, and none of its terms can be modified, nor any forfeiture under it waived, except by an agreement in writing, signed by the president or secretary of the company, whose authority for this purpose will not be delegated.

'(12) If any statement made in the application for this policy be in any respect untrue, this policy shall be void, and all payments which shall have been made to the company on account of this contract shall belong to and be retained by the company provided, however, that discovery of the same must be made by the company, and notice thereof given to the assured, within three years from the date hereof.'

It was admitted on the trial that at the date of Stevens' application he had insurance in co-operative companies to the amount of $12,000.

The company contended in the court below that by the terms of the policy it was discharged from liability by reason of the answer, 'No other,' to the question as to other insurance on the life of the applicant; its contention being that the certificates of membership in co-operative societies constituted insurance, which should have been disclosed in the written answer to that question.

The court below charged the jury, in substance, that if, at the time the application was being prepared, Stevens fully stated the facts to the agent Boak, and the latter came to the conclusion that certificates in co-operative companies did not mean insurance within the view the defendant took of insurance, and in that view wrote the answer that there was no...