Hall v. Acacia Mut. Life Ass'n

• Decision Date: 13 February 1932
• Parties: HALL v. ACACIA MUT. LIFE ASS'N.
• Court: Tennessee Supreme Court

46 S.W.2d 56

164 Tenn. 93

HALL v. ACACIA MUT. LIFE ASS'N.

Supreme Court of Tennessee.

February 13, 1932

Appeal from Chancery Court, Shelby County; D. W. De Haven, Judge.

Suit by Waverly B. Hall against the Acacia Mutual Life Association. From a dismissal of his bill, complainant appeals.

Affirmed.

L. E Lamb, of Memphis, for appellant.

Sivley Evans & McCadden and John B. Snowden, II, all of Memphis, for appellee.

CHAMBLISS J.

The company issued to Hall a life policy, August 1, 1927. The August premium was not paid in 1929, but an extension agreement was made by which payment of this premium was extended to February 1, 1930. Payment was not then made, but it was tendered February 14th and receipted for conditionally only. Reinstatement was later rejected and the payment refused and returned.

The policy carried a total and permanent disability rider, and the controversy on this appeal arises under this rider. The stipulated facts show that Hall became disabled on or about January 2, 1930, and was not in physical and mental condition to attend to business from that date, and not until after February 1st, when his policy lapsed under its terms for failure to pay the premium extended to that date. Construction of the following clauses of the disability rider is called for, and is determinative of this suit:

"In consideration of an additional annual premium of $12.80 payable at the same time and under the same conditions as the regular premium under the above numbered policy, the Acacia Mutual Life Association hereby agrees:

To waive the future premiums as the same became due during total and permanent disability;

To pay the member an income of Fifty and No/100 ($50.00) dollars each month during total and permanent disability, until the policy becomes payable by death or maturity; provided,

The member, or, if he is incapacitated, his personal representative, furnishes the Association at its Home Office, before default in the payment of premium, satisfactory proof of the member's total and permanent disability (as defined below), and provided further that such disability originated after the policy to which this agreement is attached became effective and before the anniversary of said policy nearest the member's sixtieth (60th) birthday, subject to all of the following terms and conditions:"

The company insists that the agreement (1) to waive future premiums (which in this case would include the premium due and unpaid February 1st), and (2) to make monthly payments, is subject to the expressed proviso that, "The member, or, if he is incapacitated, his personal representative, furnishes the Association at its Home Office, before default in the payment of premium, satisfactory proof of the member's total and permanent disability," etc. The rider further recites that "benefits" start from the date proof is received at the home office.

The theory of appellant is thus stated on his brief: "The Total and Permanent Disability Agreement is reasonably susceptible to the construction that the requirement to file proof of disability only refers to, and qualifies only the second paragraph containing the agreement to pay an income during disability, and therefore does not refer to, and qualify the first paragraph, containing the agreement to waive premiums during total and permanent disability."

Appellant also sets up waiver, based on the alleged knowledge and conduct of the company's agents; but we think there is no substantial basis under the stipulated facts for this contention.

Is the language of the rider "reasonably susceptible to the construction that the requirement to file proof of disability," before default in the payment of premiums "only refers to and qualifies only" the agreement of the company to make the monthly payments? Under well-established rules, if the language is ambiguous in this regard, the insured is entitled to the benefit of the doubt. Life Ins. Co. v....