Hobbs v. Iowa Mutual Benefit Association

• Decision Date: 03 February 1891
• Citation: 47 N.W. 983,82 Iowa 107
• Parties: EVA HOBBS, Appellee, v. IOWA MUTUAL BENEFIT ASSOCIATION, Appellant
• Court: Iowa Supreme Court

47 N.W. 983

82 Iowa 107

EVA HOBBS, Appellee, v. IOWA MUTUAL BENEFIT ASSOCIATION, Appellant

Supreme Court of Iowa, Des Moines

February 3, 1891

Appeal from Des Moines District Court.--HON. CHARLES H. PHELPS Judge.

ACTION on a certificate of membership issued by defendant to Richard Hobbs for the benefit of the plaintiff. A jury was impaneled to try the cause, and after the evidence was submitted, by direction of the court, it returned a verdict for the plaintiff for the sum of one thousand and nineteen dollars and sixty-seven cents. A motion for a new trial filed by the defendant was overruled, and judgment was entered in favor of the plaintiff for the amount of the verdict and costs. The defendant appeals.

Affirmed.

A. H Stutsman and Dodge & Dodge, for appellant.

Powers & Huston, for appellee.

OPINION

ROBINSON, J.

The defendant is a corporation organized under the laws of this state. On June 22, 1886, it issued to Richard Hobbs, on his application, a certificate of membership, of which the following is a copy:

"This certificate of membership witnesseth: That Richard Hobbs is a member of division A of the Iowa Mutual Benefit Association, and in consideration thereof and the future payment of all annual dues and assessments, as provided by the articles of incorporation, which are hereby made a part of this contract, the Iowa Mutual Benefit Association agrees to pay Mrs. Eva Hobbs, his wife, two thousand dollars, ($ 2,000) said sum to be paid within ninety days after presentation and acceptance of proof of death of said member. If, however, the person named in this certificate continuos a member, and be living on the twenty-second day of June, 1892 then the full amount named herein shall become due and payable to the said member within ninety days after identification. * * * This certificate is issued and accepted upon the following expressed conditions: First. If death occurs within five years, one-half of the sum named shall be paid. Second. Application is made a part of this contract. Third. Agree to pay annual dues and assessments within thirty days, etc., or forfeit certificate and membership. Fourth. Written or printed notices deposited in postoffice shall be sufficient. Fifth. If death occurs before payment, assessment shall be taken from amount due. And, sixth, provides for making and filing proof of death."

Richard Hobbs died on July 14, 1889, and proof of his death was duly furnished on the twenty-second day of that month.

I. The defendant denies liability on the certificate in suit, on the alleged ground that the death of Hobbs resulted from his engaging in an employment in violation of the contract of insurance. That contract, in terms, includes the articles of incorporation of defendant, and the application for membership of Hobbs. The portions of that application material to an examination of the questions presented are as follows:

"The undersigned desires becoming a member of division A of your association, and securing a certificate of two thousand ($ 2,000) dollars, subscribes to the following regulations and conditions of the association: To pay in to the secretary six ($ 6) dollars annually for the next three years, and, thereafter, half of this amount during the remainder of my life, or term of my certificate. Name, Richard Hobbs. Address, 1305 Corse street. Born, January 29, 1859. Beneficiary, Mrs. Eva Hobbs. [Employment of Richard Hobbs not given.] It is hereby agreed that the above and foregoing application, with the declarations and statements therein made shall form the basis of this contract. * * * If death is caused by the applicant's own immorality, dissipation, drunkenness or violation of any law of the land, or by being engaged in active military service, that then, and in either event, this contract shall become null and void, and all money which shall have been paid shall be forfeited, and the certificate issued to the applicant shall not be binding upon the association. Dated June 7, 1886.

"[Signed] RICHARD HOBBS."

Among the articles or incorporation in force when the certificate was issued was the following: "Article 5, section 1. Any person of good health and temperate habits, if not less than fifteen nor more than sixty-five years of age, who is not employed in any extra hazardous business, and who shall have passed satisfactorily the required medical examination made by a physician holding the degree of M. D., may be admitted as a member of this association by the approval of the medical directors and executive committee." One of the by-laws of the defendant, also in force at that time, is as follows: "By-law number 12. Members are allowed to engage in any lawful occupation, excepting extra hazardous, including in extra hazardous submarine operations, the production of highly inflammable or explosive substances, entering any military or naval service, except the militia when not in active service, brakemen upon freight trains, car-couplers, sailors or miners under ground."

At the time the certificate was issued. Hobbs was a car-sealer, and that fact was known to the defendant; but, at the time of his death, he was a car-coupler, and had been so engaged for about three months. While performing his duty as a car-coupler. he received an injury which caused his death within a few hours. The appellee contends that Hobbs, in following the occupation of a car-coupler, did not violate his contract of insurance. That portion of the articles of incorporation of defendant which we have set out provides that a person otherwise qualified, "who is not employed in any extra hazardous business," may be admitted as a member of the association.

It is not claimed that the occupation of car-sealer is extra hazardous. It follows, therefore, that Hobbs was qualified as to his occupation, to become a member of the association, when the contract of insurance was entered into, and that he became a member of the association under a valid agreement. The question is, did he cease to be such member by reason of his change of employment? By-law number 12 defines the occupation of "car-couplers" as extra hazardous. If it be conceded that the by-law named became a part of the contract of insurance, we have the case of one who, being a member of the association, adopted an occupation which would have disqualified him as an original applicant for membership. The contract of insurance contains nothing in regard to a change of occupation by a member. By-law number 12 allows members to...