Howell v. Security Mut. Life Ins. Co.

• Decision Date: 05 June 1923
• Docket Number: No. 17840.,17840.
• Citation: 215 Mo. App. 692,253 S.W. 411
• Parties: HOWELL v. SECURITY MUT. LIFE INS. CO.
• Court: Missouri Court of Appeals

253 S.W. 411

215 Mo. App. 692

HOWELL v. SECURITY MUT. LIFE INS. CO.

No. 17840.

St. Louis Court of Appeals. Missouri.

June 5, 1923.

Rehearing Denied June 22, 1923.

Appeal from Circuit Court, Lincoln County; Edgar B. Woolfulk, Judge.

Action by Myrtra M. Howell against the Security Mutual Life Insurance Company. Judgment for plaintiff, and defendant appeals. Affirmed.

R. L. Sutton, of Troy, and J. L. Gregory and H. D. Hinman, both of Binghamton, N. Y., for appellant.

Howell & Jackson, of Troy, and Jones, Hooker, Sullivan & Angert, of St. Louis, for respondent.

BRUERE, C.

This is an action upon a life insurance policy issued by the defendant on the life of plaintiff's husband, James E. Howell. The cause was tried by the court without a jury, upon an agreed statement of facts, and the trial resulted in a judgment for the plaintiff for $1,130. Unavailing in its motion for a new trial, the defendant appealed. The only question presented by this appeal is whether the policy in suit is a "30-payment life policy" or a "30-year term policy."

The policy bears date the 9th day a August, 1906. The provisions of the policy pertinent to the question presented are as follows:

"Security Mutual Life Insurance Company, by this policy of insurance, agrees to pay $1,000 at its home office, upon receipt of evidence satisfactory to the company of the fact and cause of death, occurring during the continuance of this contract, of James E. Howell, of Troy, county of Lincoln, state of Missouri, to Myrtra M. Howell, his wife, if living at the time of such death, otherwise to the executors or administrators of said insured.

"This contract is made in consideration of the application for this policy, which is made a part hereof. Also in consideration of the annual premium of twenty-nine and 69/10" dollars, to be paid in advance on delivery of this policy. * * *

"Provisions.

"First. To continue this policy in force subsequent premium payments of twenty-nine dollars and sixty-nine cents each shall be made to the company at its home office on or before the 9th day of August in every year for the term of 30 years from the date of issue.

* * * * * * * * *

"Fourth. This policy shall share equitably in all accumulations from lapses, interest and mortality savings, as determined by the actuary of the company, and if in force on the 9th day of August, 1936, the insured shall then have his choice of the following options:

"First. To surrender this policy properly receipted, and receive therefor in cash all such accumulations then to it's credit; or,

"Second. To receive therefor a nonparticipating paid-up policy for such an amount as its cash value will purchase at single premium rates; or,

"Third. Beginning on the 9th day of August, 1936, this policy may be continued as a renewable one-year term policy at attained age, without medical re-examination, and all accumulations apportioned and to its credit shall be applied to maintain the original rate level. Should such accumulations become exhausted the insured shall be required to pay only the net rate for one-year term insurance, and nothing for the general fund. * * *"

It appears, from the agreed statement of facts, that James E. Howell paid the first or initial annual premium of $29.69, and also paid the annual premium of $29.69, due on said policy for the years 1907, 1908, 1909, 1910, 1911, and 1912, but neither he nor any one on his behalf paid anything on account of any premium on said policy due subsequent to August 9, 1912; that James L. Howell died at Troy, Mo., on June 12, 1919, leaving surviving him his wife, Myrtra M. Howell, the plaintiff in this action; that thereafter, on July 12, 1019, the defendant insurance company received from the plaintiff proofs of death of the said James E. Howell, which said company returned to the plaintiff with a letter in which it stated that the policy had lapsed for nonpayment of premium.

The agreed statement of facto further stipulates as follows:

"That if the policy sued on herein is a 33-payment life policy for $1,000, then threefourths of the reserve on such policy, calculated and applied as a net single premium in accordance with section 6048, Revised Statutes of Missouri 1906, to the purchase of extended insurance, would continue said policy as extended insurance for its full amount, $1,000, from the date of its lapse on August 9, 1913, for the nonpayment of the premium due on that date, to a date beyond the death of the said James la Howell.

"A `30-payment life policy' is one which by its terms requires the payment of premiums thereon annually in advance for 30 years only, and which at the expiration of such 30-year period becomes fully paid up for life, no further premium payments being required thereunder, but which remains in force and is payable upon the death of the insured.

"That if the policy sued on herein is a 30-year term policy for $1,000.00, then threefourths of the reserve calculated and applied as a net single premium in accordance with section 6946, Revised Statutes of Missouri, 1909, to the purchase of extended insurance was insufficient to continue, said policy as extended insurance from the date of its lapse on August 9, 1913, on account of nonpayment of the premium due thereunder on that date, to the date of the death of the said James E. Howell.

"A `30-year term policy' is one which by its terms requires payment of premiums thereon annually in advance for a term of 30 years only, and which is payable only in the event of the death of the insured within such stipulated term of 30 years and while such policy...