Jefferson Standard Life Ins. Co. v. Wilson

• Decision Date: 15 October 1919
• Docket Number: 3355.
• Citation: 260 F. 593
• Parties: JEFFERSON STANDARD LIFE INS. CO. v. WILSON.
• Court: U.S. Court of Appeals — Fifth Circuit

260 F. 593

JEFFERSON STANDARD LIFE INS. CO. v. WILSON.

No. 3355.

United States Court of Appeals, Fifth Circuit.

October 15, 1919

Richard C. Kelly, of Greensboro, N.C., and Sam S. Bennet, of Albany Ga., for appellant.

E. K Wilcox, of Valdosta, Ga., and Clifford E. Hay, of Thomasville, Ga., for appellee.

Before WALKER, Circuit Judge, and FOSTER and GRUBB, District Judges.

WALKER Circuit Judge.

On November 8, 1917, the appellant, Jefferson Standard Life Insurance Company, a North Carolina corporation, brought in the court below a suit in equity against the appellee, a citizen of Georgia, the beneficiary named in a life insurance policy issued by the appellant to Walter Cross Culpepper, who died in December, 1916. The bill prayed that the appellee be enjoined from bringing suit on the policy, and from transferring or otherwise changing in any way the status of it, and that the policy be canceled because of the alleged falsity of mentioned statements and representations made by Culpepper in his written application for insurance as to matters material to the risk incurred by the policy. By cross-action the appellee sought to recover the amount called for by the policy in the event of the death of the insured resulting from bodily injury effected solely through external, violent, and accidental means. The appeal is from a decree in favor of the appellee on his cross-action.

The allegations of the bill as to the falsity of statements or representations contained in the application for insurance were put in issue. The granting of the relief sought by that bill also was resisted on the ground that, when the suit was brought, the policy in question was incontestable as a consequence of the following provision of it:

'Incontestability.-- After one year from date, if premiums have been duly paid, this policy shall be incontestable for any cause, except military or naval service in time of war when the double indemnity provisions on face of this contract shall not apply.'

The facts of the case do not bring it within the exception stated in the just-quoted provision. It is not claimed that the decree appealed from is subject to be reversed, if at the time the appellant's bill was filed its right to contest the policy was barred by reason of the above-quoted incontestability clause. In behalf of the appellant it is contended that its right to contest the policy had not expired at the time its bill was filed. That contention is based on the circumstance that November 15, 1916, is the date stated in the concluding clause of the body of the policy, which is quoted below. In passing on that contention the following facts are to be considered:

Culpepper's written application for insurance was made in May, 1916. On June 16, 1916, the appellant's agent delivered to him the policy, to which was attached a written instrument of which the following is a copy: 'Jefferson Standard Life Insurance Company, Greensboro, North Carolina.

'Received thirty-six and 90/100 dollars, being the interim term premium on policy No. 46412, on the life of Walter R. Culpepper, to which policy this interim term receipt is supplementary, required to render in force this term insurance from June 1, 1916, to November 15, 1916, on which date the initial term of this policy begins. By acceptance of this receipt it is agreed:

'(a) That the conditions of said policy become the conditions of this interim term insurance.

'(b) That in the event of a claim arising during the period covered by this receipt, and provided the first annual premium under this policy has not been paid, the company will deduct from this amount payable a full year's regular annual premium under the form applied for at age of issue.

'C. C. Taylor, Secretary.'

At the same time the agent delivered to Culpepper a receipt, of which the following is a copy:

'Jefferson Standard Life Insurance Company, Greensboro, N. C.

'Received one hundred eighty-nine and 35/100 dollars, being the first premium on Policy No. 46412 on the life of Walter Ross Culpepper, which is hereby rendered in force from the date of this payment to the 15th day of November, 1917, and no longer.

'This receipt will not be valid, or in any way binding on this company, unless the premium be paid in full while the insured is in good health, and this receipt be countersigned by a duly authorized agent.

'C. C. Taylor, Secretary.

'First Premium Receipt.

'Received the within named amount this 16th day of June, 1916.

'R. S. Roddenberry, Agent.'

At the same time the agent collected from Culpepper the amounts of the interim term premium and of the first annual...