Hinkler v. Equitable Life Assur. Soc. of United States
| Decision Date | 12 December 1938 |
| Citation | 61 Ohio App. 140,22 N.E.2d 451 |
| Parties | HINKLER v. EQUITABLE LIFE ASSUR. SOC. OF UNITED STATES. |
| Court | Ohio Court of Appeals |
Maxwell & Ramsey, of Cincinnati, for appellant.
Harmon Colston, Goldsmith & Hoadly and Henry B. Street, all of Cincinnati, for appellee.
The plaintiff, appellee in this appeal, brought an action against the defendant, appellant in this court, seeking to recover on two certificates of insurance, issued on the life of her husband who died November 18, 1934. She was named the beneficiary in both certificates.
The certificates were issued upon two group insurance policies carried by the Rudolph Wurlitzer Company on its employees with the defendnat insurance company.
One of the group insurance policies, or master policies as it could be designated, was a contributing policy, in which the employees contributed a certain sum toward the payment of the premiums. On the other policy the Rudolph Wurlitzer Company was to pay all the premiums.
Hinkler died while he was still an employee of the Rudolph Wurlitzer Company, in the capacity of manager of one of its stores. On the death of Hinkler, the beneficiary, plaintiff in the case filed proofs of death with the defendant company, the Equitable Life Assurance Society. Payment was refused on the claimed ground that the policy was, by agreement with the Rudolph Wurlitzer Company, terminated on the first day of November, 1934.
The case was tried to the court, a juror having been withdrawn at the conclusion of the evidence. The court held that the insurance was in force at the time of the death of Hinkler and that the beneficiary was entitled to recover the full amounts represented by the certificates, less the sum of $4.50, which the court found to be the amount chargeable to the decedent for premium payments.
The master policies were annual policies and provided for the monthly payment of premiums.
It appears that the Rudolph Wurlitzer Company and the Equitable Life Assurance Society considered the abandonment of the plan under which the master policies in question were issued and the promulgation of a new system of group insurance. The master policies had been taken out some time in the spring and had been carried for some years. As above stated, these master policies were annual policies, and the attempted cancellation was made about the middle of the year, when the policies had several months to run for the current year, and premiums had been paid up to October, 1934. During the month of October and pending the negotiations for the new system between the Wurlitzer company and the assurance society, the Wurlitzer company paid the current monthly premium for October. The conference between the Wurlitzer company and the assurance society regarding the cancellation of the old plan and the institution of a new plan occurred on the 25th of October, 1934. After the conference the Wurlitzer company sent a bulletin to all its employees through all store managers and department heads to the effect that it had terminated the master policies in question as of November 1, 1934, and were putting into effect the new plan of insurance.
On October 29, 1934, as above stated, the Wurlitzer company paid the October premium on the master policies in question.
It is claimed by the defendant that under the circumstances the policies were not in force November 18, 1934, upon which date the insured, Hinkler, died.
The contention of the plaintiff is that the master policies carried a grace clause, which maintained the policies in full force and effect for the entire month of November. The grace clause is in the policies under the requirements contained in Section 9420, General Code, and reads as follows: 'A grace of thirty-one days will be granted for the payment of every premium after the first, during which period the insurance hereunder shall continue in force * * *.'
To carry out the provisions of the master policies, certificates were issued to the several employees for the amount of their insurance. Two of them were issued to the decedent, John L. Hinkler, and provided that: 'The Equitable Life Assurance Society of the United States hereby certifies that The Rudolph Wurlitzer Company * * * has contracted to insure the life of John L. Hinkler for the sum of five thousand dollars with The Equitable Life Assurance Society of the United States by a policy of group life insurance. * * * beneficiary Marie L. Hinkler, wife.'
There can be no question that liability under the certificates and under the policies existed on November 18, the date of the death of Hinkler, unless the insurer and the Wurlitzer company could and did cancel the master policies as of November 1, 1934. If the master policies were cancelled, then it must follow that the certificates were voided.
It is shown by the record that the assurance society and the Wurlitzer company did agree that the master policies should be cancelled as of November 1, 1934.
The first question for consideration then is, Can the...
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