Hall v. American Ins. Union

• Decision Date: 20 May 1930
• Docket Number: No. 4647.,4647.
• Citation: 27 S.W.2d 1076
• Parties: HALL v. AMERICAN INS. UNION.
• Court: Missouri Court of Appeals

27 S.W.2d 1076

HALL v. AMERICAN INS. UNION.

No. 4647.

Springfield Court of Appeals. Missouri.

May 20, 1930.

Appeal from Circuit Court, Pemiscot County; Henry C. Riley, Judge.

"Not to be officially published."

Suit by J. H. Hall, administrator, substituted plaintiff for Sarah A. Hall, now deceased, against the American Insurance Union. From a judgment for plaintiff, defendant appeals.

Affirmed.

Hal H. McHaney, of Kennett, for appellant.

Ward & Reeves, of Caruthersville, for respondent.

BAILEY, J.

This is a suit on an insurance policy originally instituted by the beneficiary therein, Sarah A. Hall, who died before trial. J. H. Hall, after being appointed administrator of her estate, entered his appearance as plaintiff and filed an amended petition. This petition sets forth that the American Mutual Union, an association organized under the laws of the state of Arkansas, did in the year 1918, promise to pay Sarah A. Hall, as beneficiary and wife of G. W. Hall, a member of said association, the sum of $1,000 upon satisfactory proof of the death of the said G. W. Hall.

The petition further alleged that in April, 1925, said American Mutual Union sold and conveyed to the American Insurance Union, an insurance association, organized under the laws of the state of Ohio, and defendant herein, all of its property of every kind and character, except its furniture, its colored membership, and its records for said colored membership, and that the American Insurance Union agreed to assume and pay all of the obligations of the American Mutual Union, including the contract of insurance issued to said G. W. Hall. The petition then alleges the death of G. W. Hall, and that proper proof of his death was furnished and delivered defendant, that the sum of $1,000, named in the insurance contract, has become due and payable to plaintiff, and that, after due demand by plaintiff of the defendant, the latter has failed and refused to pay same. Judgment is prayed in the sum of $1,000.

Defendant's answer sets up that it is a fraternal beneficiary association duly incorporated and organized under the laws of the state of Ohio, with authority, under its by-laws, to assess dues upon its members, to fix the amount thereof and the manner of collecting same, that it is operated solely for the benefit of its members and not for profit, and that it has been licensed by the state of Missouri to do business in this state, as a fraternal beneficiary association. The answer further admits that G. W. Hall, who died in March, 1927, was at the time of his death a member of the defendant association; that said G. W. Hall was first insured by the American Mutual Union, a fraternal beneficiary association of the state of Arkansas; that on the 30th day of April, 1925, the American Mutual Union sold and conveyed to the American Insurance Union, defendant herein, all its property except that relating to the colored membership, but defendant denies that by said merger agreement, as approved according to the laws of the state of Ohio and also under the laws of the state of Arkansas, which laws are pleaded in the answer, it agreed to assume and pay all of the obligations of the American Mutual Union, including the contract of insurance issued by said American Mutual Union to G. W. Hall, deceased.

It is further alleged that G. W. Hall, deceased, did not transfer his policy as said merger agreement provided, nor did he pay the adequate rate provided in said agreement, but continued to pay the old rate and by virtue of said merger agreement was only entitled to the amount of insurance which his premium would purchase, that the attained age of insured herein, on January, 1926, the date of said merger, was 62 years of age, and that the monthly premium of $1.36 purchased insurance of the defendant in the sum of $147, which amount defendant tenders in court.

Plaintiff filed a reply to said answer, setting forth that he had no knowledge or information concerning the alleged merger agreement set forth in defendant's answer, and that, if there was such merger agreement, the defendant did not notify either the holder of the benefit certificate sued on or the beneficiary thereof in regard to said merger, and that they had no knowledge that they would only receive such insurance as the premium they were paying would purchase as alleged in defendant's answer.

It is further alleged that defendant failed to give any notice of said merger agreement or that said benefit certificate held by G. W. Hall automatically ceased and became null and void on January 1, 1926, but, on the contrary, that defendant held out that said original benefit certificate was in full force and effect and received the dues and payments thereon, and that defendant, by its acts and conduct, misled the said G. W. Hall, in paying his monthly dues upon the faith that he was insured for $1,000, and that therefore defendant is estopped to claim that said original benefit certificate for the amount of $1,000 was null and void and of no effect.

On trial to a jury, a verdict and judgment was rendered in the sum of $1,097, from which judgment, defendant has appealed.

Upon trial, plaintiff offered in evidence the original policy of insurance issued by the American Mutual Union of Eureka Springs. Ark., to G. W. Hall of Pascola, Mo., which provided insurance in the sum of $1,000 upon the payment of dues therein specified. Plaintiff also offered in...