Heinlein v. Imperial Life Ins. Co.

• Citation: 101 Mich. 250,59 N.W. 615
• Court: Supreme Court of Michigan
• Decision Date: 26 June 1894
• Parties: HEINLEIN v. IMPERIAL LIFE INS. CO.

59 N.W. 615

101 Mich. 250

HEINLEIN v. IMPERIAL LIFE INS. CO.

Supreme Court of Michigan

June 26, 1894

Appeal from circuit court, Bay county, in chancery; George P. Cobb Judge.

Action by Henry Heinlein against the Imperial Life Insurance Company to revive a policy of life insurance. There was a judgment for defendant, and plaintiff brings error. Reversed.

Tarsney & Wicker, for appellant.

Hoyt Post, for appellee.

McGRATH C.J.

This is a bill to revive a life insurance policy, issued December 22 1890, on the life of Maretha Heinlein, and payable "to Henry Heinlein, Jr., her son, if living; if not living, to the executors, administrator, or assigns of said insured." One Smith, an insurance agent, applied to Henry Heinlein to take out insurance. Heinlein replied that he did not desire to take out a policy, but that his mother had spoken to him about insurance, and he thought that she wanted insurance. Smith requested him to see his mother, and let him know. Afterwards Smith, who was accompanied by a physician met Heinlein, and asked if the latter had seen his mother. Heinlein replied that he had, and Smith suggested that they go right up to the house, and they did so. The application was filled out, and the medical examination made. The defendant company declined to take the full amount, viz $10,000, but issued a policy for $5,000, and the Berkshire Life took a policy for $3,000; a new application being made out, and another medical examination having been made. The first premium was paid by check on a bank at Saginaw, signed "M. Heinlein, by Henry Heinlein." The insured resided at East Saginaw, and it would appear from the testimony that Henry Heinlein also resided there, at the time the policy was taken out. The subsequent premiums were payable quarterly, and were paid to Henry Heinlein, although he testified that he had general charge of his mother's affairs, and paid the premiums in her behalf. The policy seems to have lapsed in 1891, owing to the failure to pay the premium promptly, but a health certificate was furnished, and the policy was restored. Maretha Heinlein was taken sick in the spring of 1892, and died July 2d of that year. On June 14, 1892, the president of the defendant company and the secretary thereof and the general agent of the Berkshire Life Company went to Bay City, where complainant then resided, and secured both policies from Henry Heinlein, refunding to him the amount of the premiums paid. It appears that, before going to Bay City, the officers of these companies had been to East Saginaw, and had there learned of the illness of the insured. Upon arrival at Bay City, they sought out Smith, who had solicited the insurance, and secured his services to aid in recovering the policies. The interview with Smith is described by him as follows: "We went up to a room, Mr. Angus, and Mr. Oliver and Mr. Early and myself, and Mr. Angus, I think, was the one who broached the subject to me, and told me that they were there to see what could be done with the Heinlein matter. As near as I can remember, Mr. Early showed me the papers, and asked me as to the certificate of health, etc., and wanted to know if I knew that that was graveyard insurance. I told him, 'no, sir;' I didn't consider it in that light; that the insurance was solicited in the regular way. He says: 'I understand that this, where the party is paying the premium on his mother, makes it graveyard insurance or speculative insurance.' I told him I didn't think that that was the case,-that this was a case of that kind,-because, in Mr. Heinlein's statement to me previous to this, he told me what his mother wanted the insurance for,-to protect the property of some minor children. That is what she was taking this insurance for. And Mr. Angus said to me, or Mr. Oliver,-I could not say which one; the conversation was between the two of them,-they said it was graveyard insurance, and that if he pressed it, that they should put it into the courts, and it would be a question whether they would get anything or not, and stated to me that they wanted to take them, and would pay for the taking up of the policies, and wanted to know what I thought about it. I says: 'Gentlemen, if I have done anything wrong in any way, shape, or manner, I am willing to right it.' They wanted to know how I was willing to right it. I told them I was willing to go to Mr. Heinlein, and state to him their statements, and the only condition that I would go would be that they would pay the premiums in full that Mr. Heinlein had paid. And Mr. Early and Mr. Angus talked together, and wanted to know if I would go and do that, and I told them I would, and Mr. Angus signed a check for Mr. Oliver, and Mr. Early signed a check payable to my order." He says, further: "I told Mr. Heinlein that, as I understood it, we had got ourselves in trouble with that insurance;...