McGregor v. Inter-Ocean Ins. Co.
| Decision Date | 02 February 1956 |
| Docket Number | No. 33356,INTER-OCEAN,33356 |
| Citation | 292 P.2d 1054,48 Wn.2d 268 |
| Court | Washington Supreme Court |
| Parties | Willie McGREGOR, Respondent, v.INSURANCE COMPANY, a corporation, Appellant. |
James Leavy, Duane E. Taber, Pasco, for appellant.
Charles T. Morbeck, Kennewick, for respondent.
Willie McGregor commenced this action against the Inter-Ocean Insurance Company, the insurer, to recover the sum alleged to be due her as the named beneficiary in the accident and health insurance policy of her deceased son. The only issue to be determined was whether the policy had lapsed before the death of the insured. The cause was tried to the court upon stipulated facts, and, from a judgment favorable to plaintiff, the defendant has appealed.
The stipulated facts are that the Inter-Ocean Insurance Company issued the policy to the insured, Johnnie McGregor, on March 1, 1953. Thereafter, the policy lapsed for nonpayment of premiums. May 5, 1954, Johnnie McGregor made application, in writing, for the reinstatement of his policy. The pertinent portions of the application stated:
* * *
'I understand and agree that the reinstatement of my policy shall not become effective until approved in writing by the company, * * *
'Dated at Pasco, Wn. this 5 day of May 1954
'Applicant sign here [signed] Johnnie McGregor'
The standard premium for one month for a person of the age of the insured was $7.30. The insurer acknowledged receipt of the premium and notified the insured, in writing, as follows:
'Inter-Ocean Insurance Company
'Accident, Health and Hospitalization Insurance
'Hereby acknowledges receipt of payment of $7.30 from the policyholder whose name, policy number, amount of premium and due date are shown on the opposite side of this receipt.
'This receipt will not be valid until signed by an official of the Company and countersigned by the agent whose name appears on the reverse side hereof.
'It is understood between the Company and the Insured that if this receipt is issued for a past due premium, its acceptance by the Company shall not be construed as a waiver of any of the conditions of the policy, and that no liability will be assumed for any disability sustained by the Insured originating prior to such acceptance.
'If draft, check, or remittance other than cash is tendered in payment of the premium, the Company will accept same for collection purposes only and this receipt shall not be binding unless and until the Company actually receives the cash for such draft, check or remittance.
'Dated 5/5/54 (Reinstated)
[Signature illegible]
'Countersigned by [signed] M. J. Mailer
Secretary
'(Not valid unless countersigned)'
[Reverse side.]
'Official Premium Receipt
'Inter-Ocean Insurance Company
'Executive Offices: 1200 American Building--Cincinnati 2, Ohio
'Johnnie McGregor
'411--South Idaho
'Pasco, Washington.
'Amount Due 7.30
Date Due 5/1/54
Pd to 6/1/54
'Thank You!'
The policy, as reinstated, contained the following thirty-day grace clause:
July 4, 1954, Johnnie McGregor was killed in an automobile accident.
The appellant contends that the policy had lapsed July 1, 1954; that an application to reinstate a policy does not reinstate it, and that the application was simply an offer, which was not accepted. Appellant further contends that it made a counteroffer of reinstatement, whereby it agreed to reinstate the policy as of May 5, 1954, upon the conditions that the due date would be May 1, 1954, and that the $7.30 tendered would pay for the policy until June 1, 1954 and, finally, that the insured, by his silence and retention of the policy and receipt, accepted the counteroffer.
The relationship between an insurer and the insured is purely contractual. Trinity Universal Insurance Co. v. Willrich, 1942, 13 Wash.2d 263, 272, 124 P.2d 950, 142 A.L.R. 1.
The application contained the phrase, '$7.30 month.' The receipt which the insurer returned to the insured clearly indicated that the insurer was making a counteroffer to reinstate the policy upon the condition that the due date would be retroactive to May 1st, and that the premium paid for the policy until June 1, 1954. The terms upon which the insurer accepted the premium were definite and certain.
The written application was only a request for reinstatement and, by its terms, had to be accepted in writing by the insurer....
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