John Hancock Mut. Life Ins. Co. v. Dick
| Decision Date | 14 September 1897 |
| Citation | 72 N.W. 179,114 Mich. 337 |
| Court | Michigan Supreme Court |
| Parties | JOHN HANCOCK MUT. LIFE INS. CO. v. DICK. |
Appeal from circuit court, Wayne county, in chancery; Norman W Haire, Judge.
Bill by the John Hancock Mutual Life Insurance Company against Elizabeth Dick for the cancellation of a policy on the life of one John J. Dick, and for an injunction against the prosecution of an action at law thereon. From an order overruling her demurrer to the bill, defendant appeals. Affirmed.
Philip T. Van Zile, for appellant.
Alfred Russell, for appellee.
The complainant's bill alleges:
(1) That the complainant issued a life policy of $2,000 on the life of John J. Dick, payable to the defendant, wherein it was stipulated that, if any installment should not be paid when due, the policy should be void, except as to its paid-up value. That the company was accustomed to accept past-due installments, and to reinstate the policy, provided the insured would furnish a proper certificate of good health said certificate stating further that the insured agrees that the payment is received and policy reinstated on condition of the truth of such certificate.
(2) This practice was followed by Dick, who defaulted habitually.
(3) January 8, 1896, an installment became due, notwithstanding two notices to pay, and the policy lapsed, except for its paid-up value.
(4) Thirty-eight days after default, Dick became ill, and died within forty-eight hours.
(5) He called his family doctor that day, Dr. Judson, to attend him and the same day Dick's son, learning of his father's illness, and of the physician's visit, went to the company's agent, and, concealing the facts of illness and doctor's attendance, offered to pay up. The agent suspecting nothing, said a health certificate must be furnished, and handed the son a printed form, which insured signed; and on the same 18th of February the son's wife took the form, which was signed by the patient, to the physician, to get his name as a witness, although he had not seen the insured sign. The physician signed the attestation, and added the words, "Physician of Family," and the next morning, February 19th, the son took the certificate and money to the agent, who received same, and gave receipt reinstating the policy.
Copy of certificate: "Detroit, Mich., Feb. 18, 1896. I, John J. Dick, of Detroit, Mich., being the person whose life is insured under policy number 28,251 in the John Hancock Mutual Life Insurance Company, do hereby certify that I am in as good health as when first examined on my application for said policy, and that my family record is unchanged. I also understand and agree that the payment of premium due January 8, 1896, is received, and said policy is now reinstated, by said company, on condition of the truth of the above statement.
The next day, February 20th, the insured died of the said illness.
(6) The bill charges that the representations in the certificate were false, and were known to be so by the insured, his son, his son's wife, and his physician; and that they confederated to defraud the company by preparing and delivering the certificate to the agent, with intent, by means thereof, to procure the acceptance of the past-due quarterly premium; and that the agent relied on the false certificate, and accepted and receipted for the money in ignorance of the facts.
(7) "April 11, 1896, the agent, having ascertained the fraud, tendered the quarterly premium back, and also the paid-up value, and offered to pay the same (and same is paid into court). Defendant refused the tender, and has sued the company at law in Wayne circuit court, although she is bound, in equity, to surrender the policy and receipt.
"Prayer: To declare the policy void (except for paid-up value),...
To continue reading
Request your trial