Mandego v. Centennial Mutual Life Association

• Decision Date: 12 December 1883
• Citation: 17 N.W. 656,64 Iowa 134
• Parties: MANDEGO v. THE CENTENNIAL MUTUAL LIFE ASSOCIATION
• Court: Iowa Supreme Court

17 N.W. 656

64 Iowa 134

MANDEGO v. THE CENTENNIAL MUTUAL LIFE ASSOCIATION

Supreme Court of Iowa, Des Moines

December 12, 1883

WEDNESDAY JUNE 11.

Appeal from Des Moines District Court.

ACTION ON A LIFE INSURANCE POLICY. Trial by jury, verdict and judgment for the defendant, and the plaintiff appeals.

AFFIRMED.

A. M Antrobus and Wm. Corse McArthur, for appellant.

Newman & Blake, for appellee.

OPINION

SEEVERS, J.

The policy states that it was issued "in consideration of the representations and agreements made in the application therefor, and the sum of fourteen dollars in hand paid, and the further sum of three dollars and fifty cents to be paid on the first day of October in each year hereafter." It is further stated in the policy that it is "issued by the association and accepted by the assured upon the following express conditions and agreements." There is no provision in the policy providing that a failure to pay the annual dues on the first day of October in each year should render the policy void, or that by reason of such non-payment a forfeiture would occur. But the application upon which the policy was issued contains the following provisions:

"It is hereby expressly stipulated and agreed that, if a policy shall be issued on the above application, the dues and assessments required in said policy shall be paid according to the agreements therein made. And it is hereby further expressly stipulated and agreed that the above application and this declaration shall form the basis and consideration of the policy issued to the above named applicant by the Centennial Mutual Life Association; and that, if any misrepresentation or fraudulent and untrue answers have been made, or if any facts which should have been stated have been suppressed, or if the applicant should become so far intemperate as to permanently impair the health, or should death result from suicide, or if any omission or neglect to pay any of the dues or assessments on or before the days on which they shall be due shall take place, then, and in either event, the said policy shall become null and void, and all money which shall have been paid shall be forfeited."

The defendant pleaded that because of the non-payment of the annual dues, which by the terms of the policy were payable annually on the first day of October in each year, the policy became null and void. There is no pretense that such payment was made; but the plaintiff insists that the policy did not become void by reason of such non-payment, and that such provision had been waived by the defendant, and that no notice of the forfeiture of the policy had been sent the assured.

I. Counsel for the appellant insist that the application is not a part of the policy, and that, as the latter does not provide that it will become void on the non-payment of the annual dues, no forfeiture was incurred by the failure to pay as provided. In addition to what is above set forth, it is stated in the policy that, if any of the statements or declarations in the "application for this policy, and upon the faith of which it is issued, shall be found in any respect untrue, then the policy shall be void."

The policy, as we have seen, was issued in consideration of the statements made in the application, and the application states that it forms the basis and consideration upon which the policy was issued, and that a neglect to pay the annual dues shall render the policy void. We think these two papers should be read together, in order to ascertain what the contract between the parties is. The policy is based on the application. But for the latter the policy would never have been issued. Life insurance companies could not exist for any length of time, and comply with their contracts, if the prompt payment of dues and assessments could be evaded, or the payment thereof delayed. It is common and usual to provide that, if dues and assessments are unpaid, the policy shall be null and void. There is no escaping the conclusion, we think, that this policy became void by reason of the nonpayment of the annual dues, if the application is a part of the policy. That the parties contracted upon the belief that it was, we have no doubt.

The language of both the application and policy, in our opinion leave no room for serious doubt as to the question. Counsel for the appellant cite and mainly rely on Miller v. The Mutual Benefit Life Insurance Company, 31 Iowa 216. In that case the application was held to be a part of the policy. The reference to the application or declaration in that case was not more certain, direct and positive than in the case at bar. As the application is a part of the policy, it makes no difference in what part of either...