Magee v. Equitable Life Assur. Soc. of the U.S., 6043.

Decision Date19 October 1932
Docket NumberNo. 6043.,6043.
Citation244 N.W. 518,62 N.D. 614
PartiesMAGEE v. EQUITABLE LIFE ASSUR. SOC. OF THE UNITED STATES.
CourtNorth Dakota Supreme Court

OPINION TEXT STARTS HERE

Syllabus by the Court.

1. Where a certificate is issued by a life assurance society showing that the recipient thereof is entitled to insurance subject to the terms and conditions of a group life insurance policy, such certificate must be construed in the light of such “terms and conditions.”

2. The contract of insurance is one between the assurance society and the employer for the benefit of the employee, and the obligations of the assurance society are measured by the terms of the contract.

3. Where such “terms and conditions” require that the names of those insured in the group life insurance policy be certified to the assurance society by the employer, and premiums for such employee paid monthly, the failure to include such employee in the list insured and to pay premiums upon insurance for him precludes recovery against the assurance society upon the aforesaid certificate.

Appeal from District Court, Cass County; A. T. Cole, Judge.

Action by Mattie Magee against the Equitable Life Assurance Society of the United States. From a judgment for the plaintiff, and from an order denying its motion for a new trial, the defendant appeals.

Reversed, and judgment ordered for the defendant.Pierce, Tenneson, Cupler & Stambaugh, of Fargo, for appellant.

Lemke & Weaver, of Fargo, for respondent.

HUTCHINSON, District Judge.

This action was brought to recover upon a certain certificate of insurance. The issues were tried to a jury, but, when all the evidence had been submitted, the trial court found that there were no questions of fact to be determined by the jury, the jury was dismissed, and judgment was entered for the plaintiff for the amount specified in the certificate of insurance. From the judgment and from the order denying the defendant's motion for a new trial, it has appealed.

Many of the facts are stipulated, and the controlling facts are not in dispute. On April 28, 1919, the Louisville Gas & Electric Company made application to this defendant for a policy of group life insurance, which, in part, reads as follows: “To the Equitable Life Assurance Society of the United States:-Application is hereby made for a policy of group life insurance by Louisville Gas and Electric Company, (herein called the employer), which insurance is to be on the yearly renewable term plan, to be effective on May 1st, 1919. Said group life insurance is desired to cover all employees of the employer, who upon the effective date of this policy are regularly on the pay roll, on the basis of $500.00 to all employees in the service from six months to twelve months; $1,000.00 to all employees in the service over one year.”

This application was accepted by the defendant, and it issued to the Louisville Gas & Electric Company, and its subsidiaries its group policy, and the policy issued contained the following provisions:

“The Equitable Life Assurance Society of the United States hereby insures the lives of such employees of the Louisville Gas and Electric Company, and its subsidiaries (herein after called the employer) Louisville, Ky., as are enumerated in the record known as ‘Insurance Register,’ kept by the Society, in the amount set opposite their respective names, for the term of one year from the date hereof, or for such part of said term as they shall respectively remain in the employment of the employer.”

“The policy, together with the Insurance Register herein referred to, copy of the form of which is attached hereto, shall constitute the entire contract between the parties.”

“This insurance is granted in consideration of the payment to the Society on the first day of each calendar month of the premium for the entire group of lives insured hereunder on the basis of the following table of premiums.”

“A grace of thirty days will be granted for the payment of every premium after the first, during which period the insurance shall continue in force. Except as herein expressly provided, the payment of any monthly premium shall not maintain this policy in force beyond the date when the succeeding monthly premium becomes due.”

“The insurance upon the life of any employee covered by this contract shall continue only so long as such person remains in the employment of the employer. All liability and obligation of the Society with respect to any such employee shall cease and determine immediately upon the termination of such person's employment with the employer, without regard to the cause of such termination, except that temporary leave of absence on military duty or naval service as set forth in the clause, ‘Travel, Residence and Occupation,’ on the second page of this contract, or total disability under the conditions named below, shall not constitute termination of employment within the meaning of this clause.”

“If an employee should become disabled for any cause occurring during employment so as to be unable to perform any occupation or work for gain or profit the employer may continue payments of premiums for the insurance on the life of such employee while so disabled, in which event the insurance shall continue in force during the period for which premiums are paid.”

On September 23, 1926, by agreement attached to the group policy, the name of the employer was changed to Standard Gas & Electric Company and its subsidiaries, which subsidiaries included the Northern States Power Company. By agreement which became effective September 24, 1926, the employees in the service of the Northern States Power Company were insured under the group policy in accordance with the following plan: $500 to all employees in service six months and less than one year; $750 to all employees in service one year and less than two years; $1,000 to all employees in service two years to three years.

On March 14, 1927, John Magee was employed by the Northern States Power Company in the special construction department, with wages at 40 cents per hour, and his name was placed upon the payroll. This special construction department took care of any building or installation of machinery under contract. The work of John Magee was in the toolroom. He was not employed for any definite time. He had a right to leave the employment at any time, and the Northern States Power Company had the right to dispense with his services at any time, without reason. John Magee continued this work on the same project until December 6, 1927, at which time the construction contract was completed, and he was then laid off by the Northern States Power Company, and his name taken from the pay roll. In the meantime, and on September 26, 1927, John Magee, having been employed by the Northern States Power Company for a period of six months, signed a statement giving the defendant, assurance society, his age, residence, date of employment, name of beneficiary, and amount of insurance, and containing the following clause: “It is expressly understood and agreed that all liability and obligation under the aforesaid policy, if issued, shall cease and determine immediately upon the termination of my employment with my employer as named above.”

At the same time he signed an additional statement declining further insurance to be paid for out of his wages. Thereupon the name of John Magee was...

To continue reading

Request your trial
41 cases
  • Adkins v. Aetna Life Ins. Co., (No. 9898)
    • United States
    • West Virginia Supreme Court
    • June 24, 1947
    ...The decisions of those courts are uniformly in favor of its validity and binding effect. Magee v. Equitable Life Assurance Society of United States, 62 N. D. 614, 244 N. W. 518; 85 A. L. R. 1457; Duval v. Metropolitan Life Ins. Co., 82 N. H. 543, 136 A. 400, 50 A. L. R. 1276; Szymanski v. J......
  • Nick v. Travelers Ins. Co.
    • United States
    • Missouri Supreme Court
    • September 4, 1945
    ...Equitable Life Assur. Soc., 40 Ohio App. 486, 178 N.E. 850; Stoner v. Equitable Life Assur. Soc. (Pa.), 28 Dauphin Co. Rep. 235. In the Magee case, supra, the group policy contained a provision upon termination of the employment for any reason whatsoever as in the present case. In that case......
  • Nick v. Travelers Ins. Co.
    • United States
    • Kansas Court of Appeals
    • January 22, 1945
    ... ... Williams v. Aetna Life Ins. Co ... (Mo. App.), 154 S.W.2d 426; ... App.) 741, ... 148 S.W.2d 112; Magee v. Equitable Life Assur. Soc., ... 62 N.D. 614, ... ...
  • Hayes v. Equitable Life Assur. Soc. of U.S.
    • United States
    • Kansas Court of Appeals
    • April 7, 1941
    ... ... U.S. 196; Thull v. Equitable Life Assurance Society, ... 40 Ohio App. 46, 178 N.E. 850; Magee v. The Equitable ... Life Assurance Society (N. D.), 244 N.W. 518, 85 A. L ... R. 1457; Wann ... policy in question. It is unnecessary for us to set out its ... provisions, [235 Mo.App. 1267] as the same will be found in ... the opinion of ... ...
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT