Dublinske v. Pacific Fidelity Life Ins. Co., No. 2--56842

• Court: United States State Supreme Court of Iowa
• Writing for the Court: REES; MOORE; UHLENHOPP
• Citation: 230 N.W.2d 924
• Decision Date: 25 June 1975
• Docket Number: No. 2--56842
• Parties: Leo DUBLINSKE, Administrator of the Estate of Marc Dublinske, Deceased, Appellant, v. PACIFIC FIDELITY LIFE INSURANCE COMPANY et al., Appellees.

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230 N.W.2d 924 Leo DUBLINSKE, Administrator of the Estate of Marc Dublinske, Deceased, Appellant,
v.
PACIFIC FIDELITY LIFE INSURANCE COMPANY et al., Appellees. No. 2--56842. Supreme Court of Iowa. June 25, 1975.

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McCullough Law Firm, Sac City, for appellant.

Mack, Hansen & Gadd, Storm Lake, for appellees.

Considered en banc.

REES, Justice.

This case had its genesis in a dispute over the amount due plaintiff under a policy of credit-life insurance issued by defendant Pacific Fidelity Life Insurance Company (hereinafter Pacific) to plaintiff's decedent. The other defendants admitted ultimate responsibility to pay the insurance proceeds under a reinsurance agreement. Plaintiff claimed the amount due under the policy is $2680.20, while defendants asserted the correct amount to be $1518.78. Trial court found in favor of defendants and rendered judgment in the lesser amount. Plaintiff appeals. We affirm.

Marc L. Dublinske bought a car in Texas under a contract calling for payment in installments. The amount he originally owed under the contract was $2680.20, and the term of indebtedness was 30 months. The unpaid balance decreased under a schedule upon payment of monthly installments of $89.34 each. Past-due installments bore interest. Included in the original amount of $2680.20 was a premium of $50.25 for a credit-life insurance certificate on the life of Dublinske as debtor, issued by Pacific under a group policy and payable to General Motors Acceptance Corporation as creditor-beneficiary and to Dublinske's estate as secondary beneficiary.

After the original transaction, Dublinske purchased another item, not involved here, which increased the monthly payments and the unpaid monthly balances shown on the original schedule.

Dublinske later prepaid the contract in full. Thereafter, and within the original 30-month term of indebtedness, he died in an automobile mishap. At the time of his death, the unpaid balance on the contract according to the original schedule of installments would have been $1518.78 had he not prepaid the contract.

Pacific's insurance certificate states that 'if said debtor dies during the term of the indebtedness and while this certificate is in force under said policy, the Insurer will pay to said creditor an amount equal to The original scheduled balance of the indebtedness or the net amount necessary to discharge the indebtedness at the time of death, whichever is greater, provided however that such amount of insurance shall not exceed $10,000.00. If the payable amount exceeds the unpaid indebtedness, such excess shall be payable to a beneficiary other than the creditor, named by the debtor or to his estate.' (Italics added.)

The parties disagreed over the meaning of the italicized words. Dublinske's administrator took the position that Pacific owes $2680.20. Pacific contended that it owes $1518.78 (originally it contended it owed $1428.18 but later admitted the correct amount is $1518.78 under its interpretation of the certificate).

Dublinske's administrator sued Pacific on the certificate for $2680.20, plus exemplary damages. The parties tried the case without

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a jury, and the trial court granted the administrator judgment for $1518.78. The administrator appealed.

I. The administrator claims the language...