Fulton v. Metro. Life Ins. Co

• Decision Date: 30 June 1936
• Docket Number: No. 764.,764.
• Citation: 210 N.C. 394,186 S.E. 486
• Parties: FULTON. v. METROPOLITAN LIFE INS. CO.
• Court: North Carolina Supreme Court

186 S.E. 486

210 N.C. 394

FULTON.

v.METROPOLITAN LIFE INS. CO.

No. 764.

Supreme Court of North Carolina.

June 30, 1936.

Appeal from Superior Court, Rockingham County; John H. Clement, Judge.

Action by Mary Fulton against the Metropolitan Life Insurance Company. From a judgment as of nonsuit, plaintiff appeals.

Affirmed.

This is an action to recover upon a certificate of group insurance issued by the defendant to the plaintiff as an employee of the Riverside & Dan River Cotton Mills, Inc.

At the close of the plaintiffs evidence the court sustained the motion of the defendant for judgment as of nonsuit, and the plaintiff reserved exception and appealed to the Supreme Court, assigning error.

P. T. Stiers, of Reidsville, for appellant.

Smith, Wharton & Hudgins, of Greensboro, for appellee.

SCHENCK, Justice.

From the admissions in the pleadings and from the plaintiff's evidence, it appears that on January 1, 1920, the defendant, Metropolitan Life Insurance Company, executed and delivered to Riverside & Dan River Cotton Mills, Inc., of Danville, Va, a group insurance policy No. 726-G, providing for the payment of certain disability and death benefits upon the terms specified in the policy, to certain employees of the mill company. On October 10, 1926, serial certificate No. 24203 for $500 was, pursuant to the terms of the group policy, duly executed by the defendant and delivered to the plaintiff, Mary Fulton, an employee of the mill company. Mary Fulton continued in the employment of the mill company until December 15, 1929, when she became totally and permanently disabled and left the employ of the mill company.

The first notice of any type which was given to the defendant of the disability of the plaintiff was contained in a letter dated December 31, 1930, and addressed to the defendant by P. T. Stiers, attorney for the plaintiff. The first proof of disability as required by the policy was furnished on April 14, 1931. It also affirmatively appears from the plaintiff's evidence that the group insurance policy was canceled on August 21, 1930.

The group insurance policy involved provided that: "On receipt by the Company at its Home Office of due proof that any Employee insured hereunder has become wholly and permanently disabled by accidental injury or disease, before attaining the age of sixty years, so that he is and will be permanently, continuously and wholly prevented thereby from performing any work for compensation or profit, the Company will waive the payment of each premium applicable to the insurance on the life of such disabled Employee that may become payable thereafter under this Policyduring such disability, and, in addition to such waiver will pay to such Employee during such disability in full settlement of all obligations hereunder pertaining to such Employee, and in lieu of the payment of insurance as herein provided, such monthly or yearly instalments as may be selected by such Employee by written notice to the Company at its Home Office. * * *"

The serial certificate issued to the plaintiff contained the following language: "This is to certify that under and subject to the terms and conditions of the group policy No. 726-G, Mary Fulton, an employee of Riverside & Dan River Cotton Mills, Inc., (herein called the employer) is hereby insured for Five Hundred Dollars."

The group policy also provides that: "Upon termination of active employment, the insurance of any discontinued Employee under this policy automatically and immediately terminates and the Company shall be released from any further...