Howie v. Cosmopolitan Old Line Life Ins. Co.
| Decision Date | 19 March 1937 |
| Docket Number | 29889. |
| Citation | 272 N.W. 207,132 Neb. 367 |
| Parties | HOWIE v. COSMOPOLITAN OLD LINE LIFE INS. CO. |
| Court | Nebraska Supreme Court |
Syllabus by the Court.
1. " An insurance policy is a contract and, if couched in unambiguous and clear language, should be construed as other contracts." Omar Baking Co. v. Employers Liability Assurance Corporation, 130 Neb. 365, 264 N.W. 873.
2. In considering the rights of parties under a life insurance policy, forfeitures are not favored and will be enforced only where the contract requires.
3. The term " forfeiture" need not be used in the policy in order to preclude recovery. Language meaning the same as a forfeiture will be so interpreted.
4. " Where there is no uncertainty as to the meaning of an insurance contract, and the same is legal and not against public policy, it will be enforced as made." Rye v New York Life Ins. Co., 88 Neb. 707, 130 N.W. 434.
Appeal from District Court, Lancaster County; Frost, Judge.
Action by Clara O. Howie against the Cosmopolitan Old Line Life Insurance Company. Judgment for defendant, and plaintiff appeals.
Affirmed.
Under life policy without reserve value and which provided that cash value was dependent on policy being kept in force and that policy should lapse on failure of insured to make required payments when due or within 30-day grace period insured held not entitled to recover cash value after permitting policy to lapse and failing to obtain reinstatement of policy within period prescribed thereby.
Ginsburg & Ginsburg, of Lincoln, for appellant.
Perry, Van Pelt & Marti, of Lincoln, for appellee.
Heard before GOSS, C. J., and ROSE, GOOD, DAY, PAINE, and CARTER, JJ.
Plaintiff appeals from an order entering judgment for defendant on the pleadings and dismissing the action.
The case was evidently tried first in the municipal court because the pleadings are devised for that court and a stipulation in the transcript provides that the petition and answer in the municipal court shall constitute those pleadings in the district court.
The petition alleges that defendant was incorporated as Cosmopolitan Thrift Association at the time plaintiff purchased and received the certificate of membership on which her suit was based; thereafter by amendment it changed its name to Cosmopolitan Old Line Life Insurance Company; on October 29, 1926, plaintiff purchased and received a certificate of membership for two units and paid the monthly premiums thereon from that date to and including July 29, 1931; on each unit she was required to deposit or pay $1 each month or $3 each quarter in advance; if she failed to pay this amount when due, the contract allowed thirty days of grace from the date the payment came due, but provided that, if she failed to make the payments prior to the expiration of the thirty-day grace period the certificate should automatically lapse. There was a reinstatement provision, but nothing is claimed under it. The table of values provided that at the fifth year, if the certificate was in good standing, and before the expiration of the grace period, the owner of the certificate might withdraw $39.70 for each unit, and so she sued for $79.40.
The petition further alleged that plaintiff had paid monthly premiums on her policy and certificate from October 29, 1926, to and including July 29, 1931; that thereby plaintiff became entitled to the cash value shown in the certificate for the fifth year in the sum of $79.40, which had been demanded and refused.
The petition purported to attach as an exhibit the whole certificate, but some of its provisions were omitted. However, the amended petition supplies that lack by attaching the entire contract.
The amended answer also attaches as an exhibit the purported full copy of plaintiff's certificate with all of its provisions; alleges that paragraph 6 of the contract or certificate, in providing for the cash or loan value of $79.40 at the end of the fifth year of plaintiff's certificate, gives that amount while the certificate is in good standing, but the value does not apply in the event the certificate is not in good standing and after the expiration of the grace period as provided in the certificate, quoting and pleading sections 7 and 8 of the certificate as follows:
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