Cox v. Kansas City Life Insurance Company

• Decision Date: 13 February 1911
• Citation: 135 S.W. 1013,154 Mo.App. 464
• Parties: IVA P. COX, Respondent, v. KANSAS CITY LIFE INSURANCE COMPANY, Appellant
• Court: Kansas Court of Appeals

135 S.W. 1013

154 Mo.App. 464

IVA P. COX, Respondent, v. KANSAS CITY LIFE INSURANCE COMPANY, Appellant

Court of Appeals of Missouri, Kansas City

February 13, 1911

Appeal from Jackson Circuit Court.--Hon. R. B. Middlebrook, Judge.

Judgment affirmed.

Reed Atwood, Yates, Mastin & Harvey for appellant.

H. L Eads and Harkless & Histed for respondent.

OPINION

BROADDUS, P. J.

The plaintiff's husband was a member of a fraternal benefit society organized under the laws of Missouri, located at Hamilton and known as the Fraternal Home. He lived at Pattonsburg, and belonged to a local lodge of the Home at that place. He held a certificate of insurance for two thousand dollars, payable at his death to the plaintiff, Iva P. Cox.

On the 31st day of July, 1906, the Fraternal Home and defendant Kansas City Life Insurance Company entered into a certain agreement by the terms of which the latter agreed to reinsure the members holding certificates of insurance in the former. The agreement as set out in the record is quite lengthy and we shall only call attention in brief to those parts which relate to and control the disputed issues in the case. The controlling parts are as follows: "This agreement made and entered into this 31st day of July, 1906, by and between the Kansas City Life Insurance Company, of Kansas City, Mo., a corporation organized and existing under and by virtue of the laws of the State of Missouri and engaged in the business of life insurance, hereinafter called the first party, and The Fraternal Home, a corporation organized and existing under and by virtue of the laws of the State of Missouri, hereinafter called the second party, and all policy or benefit certificate holders of the said second party who shall accept this contract subject to the terms and conditions hereof:

"Witnesseth: That said first party has agreed to accept as its policy holders each of the members of the said second party, who upon this day actually are and appear upon the books of the said second party as members thereof in good standing, and assumed for the benefit of such members such policies or certificates of said second party as are now in full force and effect to the extent and upon the condition hereinafter mentioned.

"Now, therefore, the said first party for and in consideration of the execution hereof by the said second party and the fulfillment by it and by each member and policy or certificate holder, accepting the same with all the terms and conditions hereof, doth hereby agree to receive as its policy holders all living members of said second party, who upon this date actually are and in addition thereto appear upon the books of said second party to be members thereof in good standing and doth hereby to the extent and in the manner hereinafter set forth and upon the terms and conditions hereof and not otherwise, agree to, and with said second party and each of the said members and certificate holders who shall accept, adopt and ratify this contract in its entirety, as follows:

"That it hereby assumes all the policy liabilities of the said second party that have accrued or may accrue after the date of this contract, but neither the property of the said first party nor the premium paid to it by any policy or certificate holder shall at any time or in any manner or to any extent be applicable or subject to be used in payment or satisfaction of any obligation or liabilities of said second party whatsoever excepting for such liabilities hereinafter accruing as are herein expressly provided for.

"Said first party accepts and assumes liability upon all benefit certificates of second party upon the express conditions and provisions: First, no medical examination of any member now in good standing shall be required so long as all future premium payments are made on or before the date when due; second, the members shall have the right, if they so elect, to keep and retain their present benefit certificates, and the first party shall within thirty days from date hereof mail to each member a reinsurance certificate to be attached to the benefit certificate now held, which reinsurance certificate shall be evidence of the assumption of liability by the first party hereto; third, that all of said benefit certificates or policies are assumed upon the ordinary or whole life participating plan, and to be valued as such, considering the first year from date thereof as term insurance, and the premium payment rates herein agreed to are guaranteed by the first party to remain level during the whole term of life, each member's rate to be based upon age at date of benefit certificate, issued by the second party hereto and now held by said member."

At the date of the agreement the name of Cox, the insured, appeared upon the books of the Fraternal Home as a member in good standing, but at that time he had changed his residence from Pattonsburg to the State of Kansas, and did not receive notice of the said agreement of reinsurance, but continued to pay his dues to Mr. N. G. Ellis, a local collector of the Fraternal Home up to November, 1906. On the 29th day of December, 1906, he wrote to the Fraternal Home at Hamilton wherein he stated that he had supposed everything was right until about the 1st of that month, when he received a letter from Ellis who had removed to Colorado, and notifying him that he had quit the company and returning the money he had sent him. He requested to know if the company was still in good standing and wanted him to send in his dues for November and December, and that he would do so if required. He closed his letter as follows: "I hear a great deal about the K. C. Life buying out the Home. Please let me hear from you at your earliest convenience."

This letter came to the notice of W. W. Anderson, vice-president of the defendant company, who on January 8, 1907, wrote in answer substantially that if he, Cox, had receipts for payments made to Mr. Ellis up to November, and would forward them to him, the company would give him full credit for those receipts, otherwise he would be required to pay up all back dues from September the 1st, and that it would also be necessary for him to take a medical examination.

In reply Cox wrote on January 1, 1907, the following letter:

"CLEARWATER, KANSAS, 1--18, 1907.

The Kansas City Life, Kansas City, Mo.

Dear Sirs:--I received a letter from you a few days ago, in regard to insurance. I do not understand...