Knights & Ladies of Sec. v. Grey, Case Number: 8308

• Court: Supreme Court of Oklahoma
• Writing for the Court: HOOKER, C.
• Citation: 70 Okla. 79,172 P. 933,1918 OK 160
• Parties: KNIGHTS AND LADIES OF SECURITY v. GREY.
• Docket Number: Case Number: 8308
• Decision Date: 12 March 1918

1918 OK 160
172 P. 933
70 Okla. 79

KNIGHTS AND LADIES OF SECURITY
v.
GREY.

Case Number: 8308

Supreme Court of Oklahoma

Decided: March 12, 1918

Syllabus

¶0 Insurance -- Life Insurance -- Warranties--Effect.

An applicant for life insurance warranted in his application that the answers made by him to the questions propounded by the medical examiner were true, full, and correct, and agreed that the same, together with the application, should form the basis of his agreement with the order and should constitute a warranty. The certificate issued upon application recited that the application and the report of the medical examiner are true in all respects, and that each and every part shall be held to be a warranty and to form the only basis of liability of the order, and, if not true, the certificate shall be null and void. Held, that the answers of the insured to the questions propounded by the medical examiner were warranties, and a false statement made by the insured as to his having applied to the Knights and Ladies of Security, or any other life insurance company, or association, or society, and been rejected, rendered the policy void.

Error from District Court, Oklahoma County; Edward Dewes Oldfield, Judge.
Action by Fannie A. Grey against the Knights and Ladies of Security. Judgment for plaintiff, and defendant brings error. Reversed, and cause remanded for new trial.

Hainer, Burns & Toney, for plaintiff in error.

T. J. McComb and Stephen C. Treadwell, for defendant in error.

HOOKER, C.

¶1 The plaintiff in error on October 18, 1912, issued a beneficiary certificate to Henry H. Grey payable to his wife. He died in March, 1914, and upon the refusal of the plaintiff in error to pay the amount claimed to be due upon said policy the beneficiary instituted this action.

¶2 In the petition it is alleged that the policy was issued upon the life of said Henry H. Grey, payable upon his death to the defendant in error, and that the said insured had died in March, 1914, and there was due by virtue thereof a certain fixed sum.

¶3 The answer admits the execution of the insurance contract, etc., but denied liability upon several grounds, all of which save one has been decided adversely to plaintiff in error in the case of M. B. A. v. White, 66 Okla. 241, 168 P. 794.

¶4 It is claimed by plaintiff in error that it issued said certificate and thereby promised to pay the beneficiary said sum only upon the said Henry H. Grey having complied with all of the terms and provisions of said certificate, and with the by-laws and constitution of the society, and with the warranties, representations, and agreement contained in the written application for said insurance by the said insured, together with the statements made by him in his answers to the questions propounded to him in his medical examination, and that said insured falsely and fraudulently represented to its medical examiner that he had never applied for membership to any other life insurance company, or association, or society and been rejected, whereas, in truth and in fact, he had prior to the time his application was made here anti his answer given to said medical examiner or said certificate issued to him made an application to the Mutual Life Insurance Company of New York for insurance, and had been rejected, and that by the terms and conditions of the certificate sued upon, the application and the medical examiner's report constituted a part thereof, and was a warranty that the insured had never applied to any other life insurance company, or association, or society, and been rejected, and that by virtue thereof, said warranty was broken, and said policy rendered void, and no liability accrued to it on account thereof.

¶5 The certificate sued upon contains the following stipulations:

"[1] That the application for membership in this order made by the said member, together with the report of the medical examiner which is on file in the office of the National Secretary, and both of which are made a part hereof, are true in all respects, and each and every part thereof shall be held to be a strict warranty and to form the only basis of the liability of the order to said member, or said member's beneficiaries, the same as if fully set forth in this certificate.

"[2] That if said application and medical examination shall not be true in each and every part thereof, then this beneficiary certificate shall, as t said member, or said member's beneficiaries, be absolutely null and void.

"[3] This certificate is issued in consideration of the warranties and agreements made by the person named in this certificate in said member's application to become a member of this order and in said member's medical examination."

¶6 In the application or medical examination of the insured, the following questions and answers thereto appear:

"25. [a] Have you ever applied for membership in the Knights and Ladies of Security, or any other life insurance company or association or society, and been rejected? No. * * *

"26. Have you ever made application to any life insurance company, association, or society and withdrawn it before rejection, or been advised by any medical examiner that he could not pass you on account of your physical condition, or personal or family history? No."

¶7 And in addition thereto the following agreement is twice embraced therein.

"I hereby make application for a beneficiary certificate. * * * And I hereby declare that the foregoing answers and statements and the answers to the questions propounded to me by the medical examiner are warranted to be true, full and correct, and I acknowledge and

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