Howard v. Missouri State Life Ins. Co.

• Decision Date: 04 December 1926
• Docket Number: (No. 7642.)<SMALL><SUP>*</SUP></SMALL&gt
• Citation: 289 S.W. 114
• Parties: HOWARD et al. v. MISSOURI STATE LIFE INS. CO.
• Court: Texas Court of Appeals

289 S.W. 114

HOWARD et al. v. MISSOURI STATE LIFE INS. CO.

(No. 7642.)^*

Court of Civil Appeals of Texas. San Antonio.

December 4, 1926.

Rehearing Denied January 5, 1927.

Appeal from District Court, Bexar County; Robt. W. B. Terrell, Judge.

Action by Lucy M. Howard and another against the Missouri State Life Insurance Company. From a judgment for defendant, plaintiffs appeal. Affirmed.

Boyle, Ezell & Grover, C. L. Bell, and J. D. Wheeler, all of San Antonio, for appellants.

Templeton, Brooks, Napier & Brown, of San Antonio, for appellee.

SMITH, J.

On February 25, 1920, the Missouri State Life Insurance Company issued three life insurance policies, each in the amount of $5,000, to William H. Howard. The annual premiums upon these policies aggregated $391.35, and those premiums were paid for the first year. Shortly after they were issued the policies were assigned by Howard to Henry L. Halff to secure a debt in excess of the amount of the insurance. On November 6, 1920, less than nine months after the policies were issued, Howard, the insured, committed suicide. Proof of death was made to the company, against which demand for the amount of the policies was made on February 23, 1921. The company rejected this demand, but tendered the beneficiary the amount of the first year's premium paid upon the policies, which was refused, whereupon suit was brought by Howard's widow and Halff, to whom the policies had been assigned, for the amount of the policies, with damages and attorney's fees. From a judgment for the company in response to its tender, the plaintiffs below have appealed.

The insurance policies involved covered four printed pages. On the first page it was stipulated, among other provisions, that:

The company "agrees to pay $5,000, which is the face amount hereof, immediately upon receipt of due proof of the death of William H. Howard, the insured, to the insured's executors, administrators, or assigns. * * *"

This stipulation also appeared upon the first page of the policies:

"Unrestricted and after one year incontestable as follows: This policy is free from conditions as to residence, occupation, travel, or place of death, in times of peace, and shall be incontestable after one year if the premiums are duly paid, except for violation of the provisions relating to military or naval service in time of war."

The "general provisions" of the policies, appearing on the third page in smaller type, embraced the stipulation that:

"In case of death by self-destruction, sane or insane, within one year from date of issue, the liability of the company shall be limited to an amount equal to the premiums paid hereon."

The case turns, substantially, upon the validity and effectiveness in this instance of the provision in the policy, that, in event of the suicide of the insured within the period of one year from the date of issuance of the policy, the liability of the insurer shall be limited to the payment to the beneficiary of the amount of the premiums paid by the insured.

It is first contended by appellants that the provision that the policy shall be incontestable after one year applies to the defense of suicide, and that, upon failure of the company within that period to institute a suit to contest the policy upon that ground, the company is precluded from setting up the defense of suicide after the expiration of that year. We conclude, however, that this contention can be sustained by only a strained and unreasonable construction...