Fletcher v. Metropolitan Life Ins. Co.

• Decision Date: 05 March 1940
• Docket Number: No. 25199.,25199.
• Citation: 137 S.W.2d 621
• Parties: FLETCHER v. METROPOLITAN LIFE INS. CO.
• Court: Missouri Court of Appeals

137 S.W.2d 621

FLETCHER v. METROPOLITAN LIFE INS. CO.

No. 25199.

St. Louis Court of Appeals. Missouri.

March 5, 1940.

Rehearing Denied March 19, 1940.

Appeal from St. Louis Circuit Court; Eugene L. Padberg, Judge.

"Not to be reported in State Reports."

Action for accidental death benefits under an industrial life policy by Henry Fletcher against the Metropolitan Life Insurance Company. From a judgment for the plaintiff, defendant appeals.

Judgment reversed and cause remanded with directions.

Fordyce, White, Mayne, Williams & Hartman and R. E. LaDriere, all of St. Louis (Harry Cole Bates, of New York City, of counsel), for appellant.

John A. Davis, of St. Louis, for respondent.

McCULLEN, Judge.

This action was begun by respondent, as plaintiff, against appellant, as defendant, to recover from defendant benefits on account of the death, by accidental means, of plaintiff's wife. It was instituted before a justice of the peace. There was a judgment for defendant and plaintiff appealed to the Circuit Court of the City of St. Louis, where, upon a stipulation of facts, the cause was tried by the court, a jury having been waived, resulting in a judgment in favor of plaintiff in the sum of $250 on the policy, to which was added $26.63 as interest, as well as $27.66 damages and $50 attorney's fees for vexatious refusal to pay, making a total of $354.29. Defendant duly appealed to this court.

Plaintiff's petition alleges that defendant, a New York corporation duly authorized to do business in Missouri, issued Policy No. 95164581 on the life of Naomi Fletcher, plaintiff's wife, promising to pay for the accidental death of said Naomi Fletcher; that plaintiff, husband of the insured, was designated beneficiary in the policy; that Naomi Fletcher died September 26, 1936, as the result of an accident; that due proofs of the accidental death of the insured were filed with defendant and demand made for payment, which was refused by defendant; that said refusal of defendant to pay was for vexation and delay only. Plaintiff prayed for the face value of the policy, as well as penalties and attorney's fees for defendant's vexatious refusal to pay.

No answer was filed by defendant either in the justice court or in the circuit court.

The stipulation of facts, on which the cause was tried in the circuit court, in substance is as follows: That plaintiff was the husband of the deceased, who was insured by defendant; that the policy, which was introduced in evidence as Exhibit A, is dated July 11, 1927, and was issued for the sum of $250; that no beneficiary was named in the policy; that, on or about January 2, 1929, after the issuance of the policy, defendant issued an announcement to its industrial policyholders that an accidental death benefit would be granted under industrial policies then in force, without additional premiums, in the case of the death of the insured from injuries sustained on or after December 1, 1928, in accordance with a provision contained in said announcement. The announcement was introduced in evidence as Exhibit B. The parties agreed in the stipulation that said announcement applied to the policy in suit. The announcement provides that, upon receipt of due proof that the insured, after attaining age fifteen and prior to attaining age seventy, after the date of the policy, has sustained "bodily injuries, solely through external violent and accidental means, resulting, directly and independently of all other causes, in the death of the Insured within ninety days from the date of such bodily injuries while this Policy is in force, and while premiums are not in default beyond the grace period specified in this Policy, the Company will pay in addition to any other sums due under this Policy and subject to the provisions of this Policy an Accidental Death Benefit equal to the face amount of insurance then payable at death, except that if such bodily injuries are sustained by the Insured while employed in or on the premises of any open pit or underground mine, or are sustained by the Insured while on or about the premises or right of way of any railroad company, while the Insured is following the occupation of gang, track, or roadway laborer, track walker, yard, freight or mixed train brakeman or flagman, then the Accidental Death Benefit shall be only one-half of the face amount of insurance then payable at death. In any case, the amount of the Accidental Death Benefit shall be reduced by the amount of any Disability Benefit which has become payable under this Policy on account of the same injuries as resulted in death."

It was further stipulated by the parties that the death of the insured occurred on September 26, 1936, as the result of bodily injuries effected solely through violent, external and accidental means and within ninety days after said accidental injuries were sustained; that said death occurred under circumstances that would have brought it within the accidental death benefit provisions in the policy had the policy been in full force and effect by payment of premiums in full up to the date of the insured's death instead of being in force under the nonforfeiture provisions contained therein and by virtue of the applicable Missouri extended insurance statute; that, prior to the time of the insured's death, said policy had lapsed with the date of the last payment of premium, November 18, 1935, but that the policy was in force under the nonforfeiture provisions contained therein and was continued as extended insurance, by virtue of the applicable Missouri statute, in an amount equal to the face of the policy for a period expiring July 11, 1952; that "if the insured had lived to the maturity date of the policy, a pure endowment in the sum of $12.18 would have been payable to her; based upon the same net value under the applicable Missouri statute, but extending the policy for twice the face amount thereof, this period would have expired on March 21, 1945."

It was further stipulated by the parties that, after the death of the insured, defendant paid to plaintiff the sum of $250.55, the face amount of the insurance, as benefits for natural death.

The question to be determined herein is whether or not plaintiff is entitled to recover accidental death benefits in addition to the benefits for natural death already paid.

Defendant contends that accidental death benefits are not recoverable because, as defendant asserts, the policy contains plain and unambiguous language excluding accidental benefits while the policy is on extended insurance; and that such plain and unambiguous language is not susceptible of construction by the courts.

It is conceded by defendant, in the stipulation of facts, that under Section 5741, R. S.Mo.1929, Mo.St.Ann. § 5741, p. 4388, the extended insurance provided for by said section extended the policy from the death of the insured to March 21, 1945, or far beyond the date of the insured's death, which occurred on September 26, 1936. Furthermore, it is stated in the announcement (Exhibit B) which defendant issued: "The Accidental Death Benefit is granted without specific extra premium being charged therefor, the cost being included in the premium for this Policy." (Italics ours.) It appears, therefore, that all the insurance provided for in the policy was covered by the payment of premiums which were made by or for the insured during the premium paying period.

If the benefits for natural death are payable as a result of the operation of Section 5741, supra, the extended insurance statute, as conceded by defendant, we think it necessarily follows that the benefits for death by accidental means are also payable unless a provision of the policy expressly excludes the last-mentioned death benefits for death...