McCoy v. Nw. Mut. Relief Ass'n

• Decision Date: 10 March 1896
• Citation: 92 Wis. 577,66 N.W. 697
• Parties: MCCOY v. NORTHWESTERN MUTUAL RELIEF ASS'N.
• Court: Wisconsin Supreme Court

92 Wis. 577

66 N.W. 697

MCCOY

v.NORTHWESTERN MUTUAL RELIEF ASS'N.

Supreme Court of Wisconsin.

March 10, 1896.

Appeal from circuit court, La Fayette county; George Clementson, Judge.

Action brought by Mary E. McCoy against the Northwestern Mutual Relief Association to recover under a contract of insurance. Judgment for plaintiff, and defendant appealed. Reversed.

This action is brought by the plaintiff against the defendant, a corporation doing an insurance business on the co-operative plan, on certificate of membership No. 7,844, issued to William McCoy, April 11, 1889, which matured and became payable to plaintiff as beneficiary, by his death by suicide, July 8, 1892, unless the manner of such death constitutes a defense to plaintiff's claim. The certificate, by its terms, requires defendant to pay plaintiff 80 per cent. of an assessment made upon the members of the association, under its system, not exceeding in all $2,000. The only method or remedy by which plaintiff can enforce her rights as beneficiary is by an action in equity to compel the association to comply with the terms of the certificate by making an assessment upon its members, and paying the proceeds thereof to her, not exceeding in all $2,000. Plaintiff's claim was duly proved under the rules and regulations of the association and the terms of the certificate, and, after the termination of the period within which defendant was required to levy the assessment, it having neglected and refused so to do, on the ground that the assured came to his death by suicide, this action was brought.

The application made by the assured for membership in the association, upon which the certificate was issued, contained the following: “I hereby agree that the association assumes no liability in case of suicide or self-destruction, and that the certificate of membership shall contain the usual terms, conditions, and regulations. * * *” Indorsed on the back of the certificate, and made a part of the contract of insurance, was the following: “(1) Suicide or self-destruction of the member herein named, whether voluntary or involuntary, sane or insane, at the time thereof, is not a risk assumed by this association. * * * (2) Neither the member * * * nor the association shall be liable upon the certificate * * * for any suicide or self-destruction for a greater amount than eighty per cent. of the assessment paid by such member.” The trial court found facts in accordance with the foregoing. Also, in effect: That the articles of organization of the defendant, when the certificate was issued, provided that members should be entitled to receive benefits upon such terms and subject to such regulations as prescribed by the board of directors or the executive commitee. That, until January 15, 1890, there was no by-law or regulation of the defendant adopted in accordance with such articles, or at all, authorizing the issuance of a certificate with the provision against liability in case of death by suicide or self-destruction. That by the by-laws and regulations existing prior to the date mentioned, all certificates were payable absolutely upon maturity, by death, whether caused by suicide or otherwise, and that the form of application and certificate used by the association up to February 7, 1889, was in accordance therewith, after which date, by the secretary of the association, without authority of the board of directors, a provision was inserted in the applications and indorsed on the back of the certificates used, similar to the provisions in the application and on the back of the certificate in question, limiting mortuary benefits to cases of death from causes other than suicide or self-destruction. That in November, 1889, notice was sent to the members of the association, including the deceased, of a proposed amendment to the by-laws, providing against liability in case of death by suicide or self-destruction; and on the 15th day of January, 1890, pursuant to such notice, such an amendment was duly adopted, and it was provided that all certificates issued prior to January 25, 1890, should be known as “Old Series,” and those issued after January 24, 1890, should be known as “New Series.” A new provision was made in regard to the classification of certificates and in regard to assessments, applicable only to the new series; and it was further provided that members holding old series certificates should be assessed according to the old by-laws, though such holders might exchange such certificates for certificates of the new series. That on the 9th day of January, 1890, accompanied by a notice of an assessment, the deceased received a communication from the defendant in the form of a circular letter addressed to each member of the association, to the effect that after January 21, 1890, a new form of certificate would be issued, containing advantages over the old form, in that, among other things, there would no longer be any liability in case of death by suicide; and thereafter, July 11, 1892, he received another circular letter, calling attention to the new regulations, and urging the exchange of the old for the new certificates,...