French v. Mut. Reserve Fund Life Ass'n

• Decision Date: 22 December 1892
• Citation: 16 S.E. 427,111 N.C. 391
• Court: North Carolina Supreme Court
• Parties: FRENCH . v. MUTUAL RESERVE FUND LIFE ASS'N.

16 S.E. 427

111 N.C. 391

FRENCH .

v.MUTUAL RESERVE FUND LIFE ASS'N.

Supreme Court of North Carolina.

Dec. 22, 1892.

Life Insurance—Conditions on Reinstatement of Insured — Continuous Good Health During Year Preceding.

A reinstatement by a mutual life insurance company of a member whose policy had lapsed, on his payment of the back dues, on condition that he "is now, and has been during the past 12 months, in continuous good health, and free from all disease, infirmity, or weakness, " is not vitiated by slight illness within such 12 months, of a temporary nature, which indicates no vice in his constitution, and from which he had fully recovered-at the time of his reinstatement; but the illness must have been such that he would not have been received if he had been an original applicant for insurance. MacRae, J., 'dissenting.

Appeal from superior court, New Hanover county; Robert W. Winston, Judge.

Action by Mary J. French against the Mutual Reserve Fund Life Association on a policy of insurance. From a judgment in plaintiff's favor, defendant appeals. Affirmed.

Duval French was insured in the defendant company for the benefit of his sister, the plaintiff. He had permitted his policy to lapse for nonpayment of dues, but subsequently he had paid them, and had been reinstated by the defendant company, and at the time of his death he owed the de fendant nothing. When reinstated by the company, it gave him a receipt for the back dues, upon which was printed the following: "The conditions upon which the within payment (for which this receipt is given) is accepted are as follows: First. That said member is now living, and of temperate habits, and is now, and has been during the past twelve months, in continuous good health, and free from all disease, infirmity, or weakness; otherwise said payment and this receipt and said policy shall be and is null and void, and the sum paid hereon shall be subject to the order of the within named person. Second. The receipt and acceptance of the within sum by the association shall not be held to waive forfeiture on expiration of membership, or to reinstate membership, or to create any liability on the part of the association under said policy, except upon fulfillment of the first condition of this receipt." There was evidence tending to show that while the policy was lapsed, and before this reinstatement receipt was given, the assured had been unwell. There was conflicting evidence as to the nature of this illness; the plaintiff contending that it was slight, temporary, and in no wise affecting the permanent health of the assured. The defendant contended otherwise, —that the illness was of a serious nature; and, furthermore, that if this was not so, by the terms of the receipt, if the insured had been sick at all within the twelve months...