Jameson v. Mutual Life Insurance Company of New York
| Decision Date | 18 November 1968 |
| Docket Number | Civ. No. 5173. |
| Citation | 292 F. Supp. 834 |
| Parties | Frank JAMESON and Hazel Jameson Cole v. MUTUAL LIFE INSURANCE COMPANY OF NEW YORK. |
| Court | U.S. District Court — Eastern District of Texas |
Ernest L. Sample, Beaumont, Tex., for plaintiff.
Larry M. Lesh, Dallas, Tex., for defendant.
This case has been submitted to the Court upon an agreed stipulation of facts and briefs prepared by the parties. Briefly, the plaintiff, Frank Jameson, Jr. and Intervenor, Mrs. Hazel Jameson Cole, seek by this action to recover Double Indemnity Benefits under two policies issued by defendant, The Mutual Life Insurance Company of New York, the Company which provides insurance upon the life of Frank Edward Jameson.
The facts are as follows: Policies XXX-XX-XX and XXX-XX-XX were classified as a "Z" series class of policy, authorized for issuance by the Company from January 1, 1948 to September 5, 1951. Form 48-301, the double indemnity rider attached to and made a part of the policies was also authorized for use in connection with class "Z" policies from January 1, 1948 to September 5, 1951. This double indemnity provision had an established reserve based upon the 1926-1933 inter-company table with the 1941 Commissioner's Standard Ordinary Table of Mortality and a 2.25% interest factor. A dividend has been paid on form 48-301 in each year since 1950.
Statistics on the method of suicides indicate that among white men in the United States, firearms are the most frequent means of suicide and account for more than one-half of such suicides. For this reason, Defendant included in Form No. 48-301, being the double indemnity rider attached to policies numbered XXX-XX-XX and XXX-XX-XX, a provision removing from the coverage of such double indemnity provisions deaths "caused or contributed to by * * * self-destruction * * *" and deaths "caused or contributed to by * * * gunshot or pistol wound, unless inflicted by a person other than the insured."
The Company filed Form 48-301, with the Insurance Department of the State of Louisiana on March 6, 1947, which approved the Form and on April 7, 1947, Form No. 48-301 received the approval of the Insurance Department of the State of New York. Pursuant to applications made by Frank Edward Jameson and delivered to a representative of the Company in Louisiana, the Company issued and delivered to Frank Edward Jameson in Louisiana the policies in question. Because the Company was not authorized to do business in Texas until September 1950, Form No. 48-301 did not receive the approval of the Insurance Commissioner of Texas until October 6, 1950.
From January 1, 1964, through December 31, 1966, the Company authorized accidental death benefit rider Form 64303 for use in connection with the Company's "D" Series class of policy. Form 64303 had a premium, dividend and reserve structure which differed from that used in connection with Form 48-301. The reserves in Form 64303 were established by the 1959 inter-company accidental benefit table with the 1958 Commissioner's Standard Ordinary Table of Mortality and a 2.50% interest factor. No dividends have been paid on Form 64303.
The benefits in Form 64303 were more liberal than those in Form 48-301, in that, the coverage was extended from 65 to age 70, and death by gunshot as an exclusion was eliminated. The rates for Form 64303 were "reduced in recognition of recent favorable experience and because of the omission of the future dividends on the provision until shown to be justified by experience."
Frank Edward Jameson died on November 22, 1964. He was placing a loaded pistol in his pocket and the pistol fired accidentally, striking him in the abdomen and causing his death. The Company paid the ordinary life benefits of $10,000 in each policy but denied liability for the double indemnity benefits in such policies on the ground that the insured's death was within the gunshot wound exclusion of Form No. 48-301.
As stated earlier, the main issue is whether the death of Frank Edward Jameson is within the gunshot exclusion of Form No. 48-301; however, other issues must be decided before that issue is reached. The first issue is whether the substantive law of Texas, Louisiana or New York is applicable to this case. Both Plaintiff and Defendant apparently agree that the substantive law of Louisiana should apply since the insurance contract was entered into and delivered in Louisiana. The nature, validity, and construction of an insurance contract should be governed by the law of the place where it was made. Bostron v. Seguros Tepeyac, 225 F.Supp. 222 (N.D.Tex., 1963); Washington Nat'l Insurance...
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...fact, the particular exclusion at issue was deemed approved by the Alabama Department of Insurance. See, e.g., Jameson v. Mutual Life Ins. Co., 292 F.Supp. 834, 836 (E.D.Tex.1968) (when rider was approved by state department of insurance, it was lawfully part of the policy), aff'd in pertin......