Hopkins v. Northwestern Life Assur Co.

• Decision Date: 23 January 1900
• Docket Number: 7.
• Citation: 99 F. 199
• Parties: HOPKINS v. NORTHWESTERN LIFE ASSUR. CO.
• Court: U.S. Court of Appeals — Third Circuit

99 F. 199

HOPKINS v. NORTHWESTERN LIFE ASSUR. CO.

No. 7.

United States Court of Appeals, Third Circuit.

January 23, 1900

Bernard Gilpin, for plaintiff in error.

Alexander Simpson, Jr., for defendant in error.

Before ACHESON, DALLAS, and GRAY, Circuit Judges.

GRAY Circuit Judge.

This was an action of contract, brought in the circuit court of the United States for the Eastern district of Pennsylvania to recover the sum of $10,000, with interest from August 8 1898. The record discloses the following facts: On March 26 1892, John S. Hopkins, of the city of Philadelphia, applied for membership in the Northwestern Masonic Aid Association, a corporation existing under the laws of the state of Illinois for a policy of insurance on his life for $10,000, and on April 14, 1892, the said Masonic Aid Association issued its certificate or policy No. 53,477 on the life of the said John S. Hopkins, the beneficiaries named therein being 'his wife, Emily V. Hopkins, if living; if not, to this children, or the survivors of them, equally, if living. ' The said John S. Hopkins paid the premiums on said policy as they became due until the month of December, 1897. The said policy or certificate of membership No. 53,477 had indorsed thereon the following provision:

'Change of beneficiaries can be made at any time, without charge, upon complying with the by-laws.'

The by-laws referred to expressly provide that:

'Any member may secure a change of the beneficiaries named in his certificate upon surrendering said certificate to the secretary for cancellation, and stating to him in writing to whom in said classes of beneficiaries mentioned in said articles of incorporation he desires such benefits paid; whereupon the secretary shall change upon the records the name of such beneficiary, and issue a new certificate accordingly.'

The act of the general assembly of Illinois under which defendant company was incorporated provided that:

'Membership in any such corporation shall give to any member thereof the right at any time, with the consent of such corporation, to make a change in his payee or payees or beneficiary or beneficiaries; without requiring the consent of such payee or beneficiary.'

The certificate also provided that it should not be binding if the insured 'shall suffer death in consequence of any violation by him of any penal law of any state or government. ' In June 1896, by resolution of the board of trustees of the Northwestern Masonic Aid Association, and proceedings duly had thereunder, the name of the said association was changed to that of the Northwestern Life Assurance Company. On December 8, 1897, said Northwestern Life Assurance Company, upon application of the said John S. Hopkins, canceled said policy No. 53,477, and issued in lieu thereof to him a new policy on his life for $10,000, numbered 117,132, payable on his death to 'his wife, Emily V. Hopkins, if living; if not, to his surviving children, equally, if living'; said John S. Hopkins paying therefor, on December 2, 1897, the annual premium of $434.90. This was largely in excess of the premium on the old policy, which, in 1897, had been less than $250, but there were various provisions in the new policy or certificate which were claimed to make it more desirable than the old, such as extended insurance, cash surrender values, paid-up policy values, loan values, and the cessation of all payments after 20 years. Said policy or certificate No. 117,132, issued December 8, 1897, as aforesaid, contained, inter alia, the following stipulation:

'(9) If the insured shall die by his own hand or act, whether sane or insane, within two years from the date of this policy, or shall suffer death in consequence of the violation by him of any penal law of any state or government, then this policy shall be void, and shall cease to be binding upon said company, except for the amount which the insured has paid in premiums on account thereof.'

The said John S. Hopkins died by his own hand on March 24, 1898 (the...