McQueeny v. National Fidelity Life Ins. Co.

• Decision Date: 12 November 1942
• Docket Number: 37210
• Citation: 166 S.W.2d 461,350 Mo. 469
• Parties: Herman Josephine McQueeny, Appellant, v. National Fidelity Life Insurance Company, a Corporation
• Court: Missouri Supreme Court

166 S.W.2d 461

350 Mo. 469

Herman Josephine McQueeny, Appellant, v. National Fidelity Life Insurance Company, a Corporation

No. 37210

Supreme Court of Missouri

November 12, 1942

Rehearing Denied December 7, 1942.

Appeal from Jackson Circuit Court; Hon. Ben Terte, Judge.

Affirmed.

Edw E. Naber, Carl E. Kimpton and Walter A. Raymond for appellant.

(1) The defendant charged too much interest in advance on the policy note, dated August 1, 1932. Conklin v. Henry Quellmatz Lbr. & Mfg. Co., 20 S.W.2d 564; Jennings v. Todd, 118 Mo. 296, 24 S.W. 148; Alexander v. Scott, 150 Mo.App. 213, 129 S.W. 991; 8 C. J., sec. 327, p. 196; Caneer v. Kent, 119 S.W.2d 214, 342 Mo. 878; McCormick v. Transit Co., 154 Mo. 191, 55 S.W. 252; Priest v. Oehler, 41 S.W.2d 783, 328 Mo. 590; Sec. 3018, R. S. 1939; Quilty v. New York Life Ins. Co., 109 P.2d 215, 153 Kan. 129; Interior Linseed Co. v. Becker-Moore Paint Co., 202 S.W. 566, 273 Mo. 433; Mutual Life Ins. Co. v. Hurni Packing Co., 263 U.S. 167, 44 S.Ct. 90, 91 L.Ed. 255; Secs. 3027, 3033, R. S. 1939; Stahl v. American Natl. Assur. Co., 70 S.W.2d 78; State ex rel. Commonwealth Cas. Co. v. Cox, 14 S.W.2d 600, 322 Mo. 38; Miller v. Mo. Life Ins. Co., 186 S.W. 762, 194 Mo.App. 265; Mutual Life of Ill. v. McKinnis, 47 S.W.2d 564; Fischman-Harris Realty Co. v. Kline, 82 S.W.2d 605. (2) The policy is an old line, ordinary whole life, legal reserve insurance contract. Natl. City Bank v. Mo. State Life Ins. Co., 332 Mo. 182, 57 S.W.2d 1066; Penn Mutual Life Ins. Co. v. Forcier, 103 F.2d 166. (a) The plain and unambiguous provisions of the policy show it did not go into effect and become a binding contract until the first premium was paid on July 19, 1923. Halsey v. Insurance Co., 258 Mo. 659, 167 S.W. 951; Howard v. Aetna Life Ins. Co., 145 S.W.2d 113, 346 Mo. 1062; Johnson v. American Life Ins. Co., 249 S.W. 115, 212 Mo.App. 290; Penn Mutual L. Ins. Co. v. Forcier, 103 F.2d 166; Mutual Reserve L. Ins. Co. v. Roth, 122 F. 853. (b) An annual premium pays for one whole year's insurance. The effective date determines date when insurance begins, and expiration date for premiums paid. (c) Reserve values are computed from effective date to lapse of policy for non-payment of premium. Halsey v. American L. Ins. Co., 258 Mo. 659, 167 S.W. 951; Howard v. Aetna Life Ins. Co., 145 S.W.2d 113, 346 Mo. 1062; Medlin v. Ins. Co., 59 S.W.2d 738, 227 Mo.App. 705; Chestnut v. Security Mut. L. Ins. Co., 232 S.W. 203, 208 Mo.App. 130; Ragsdale v. Brotherhood Railroad Trainmen, 80 S.W.2d 272; Johnson v. American Central Life Ins. Co., 249 S.W. 115, 212 Mo.App. 290; Landrigan v. Mo. State L. Ins. Co., 245 S.W. 382, 211 Mo.App. 89; State ex rel. Mo. State Life Ins. Co. v. Allen, 243 S.W. 839, 295 Mo. 307; State ex rel. v. Mills Lbr. Co., 39 S.W.2d 355, 327 Mo. 899; Kennedy v. Natl. Acc. & Health Ins. Co., 76 S.W.2d 748; Eyring v. Kansas City L. Ins. Co., 129 S.W.2d 1086, 234 Mo.App. 328; Klinkhardt v. Crescent Ins. Co., 47 S.W.2d 210; Penn Mut. Life Ins. Co. v. Forcier, 103 F.2d 166; Kimbrough v. Insurance Assn., 35 S.W.2d 654; Great Southern L. Ins. Co. v. Brooks, 151 S.W.2d 346; McMaster v. New York L. Ins. Co., 183 U.S. 25; Kelly v. Abraham Lincoln Life Ins. Co., 33 S.W.2d 992, 225 Mo.App. 317; Natl. City Bank v. Mo. State L. Ins. Co., 57 S.W.2d 1066, 332 Mo. 182. (3) The court erred in admitting in evidence over the objections and exceptions of plaintiff evidence offered by defendant tending to vary the plain and unambiguous terms of the written contract of insurance. Halsey v. Insurance Co., 258 Mo. 659, 161 S.W. 951; Howard v. Aetna Ins. Co., 145 S.W.2d 113, 346 Mo. 1062; Landrigan v. Mo. Life Ins. Co., 245 S.W. 382, 211 Mo.App. 89; Medlin v. American Bankers Ins. Co., 59 S.W.2d 738, 227 Mo.App. 705; Johnson v. American L. Ins. Co., 249 S.W. 115, 212 Mo.App. 490; Hampe v. Metropolitan L. Co., 21 S.W.2d 926; Lacy v. American Central L. Ins. Co., 115 S.W.2d 193, 232 Mo.App. 1132; Wetmore v. Crouch, 150 Mo. 671, 51 S.W. 738; Hannan-Hickey Bros. Const. Co. v. Chicago, B. & Q. Ry. Co., 247 S.W. 436; Chestnut v. Security Mutual L. Ins. Co., 232 S.W. 203, 208 Mo.App. 130; Southern Surety Co. v. Goltra, 9 S.W.2d 661; Wendorff v. Mo. State L. Ins. Co., 1 S.W.2d 99, 318 Mo. 363; De Mun Estate Corp. v. Frankfort General L. Ins. Co., 187 S.W. 1124, 196 Mo.App. 1; Soukop v. Insurance Co., 108 S.W.2d 86, 341 Mo. 614; State ex rel. v. Hostetter, 108 S.W.2d 17, 341 Mo. 488; Lee v. Mo. State L. Ins. Co., 261 S.W. 83, 303 Mo. 492. (4) No benefit accrued to the insured by back-dating the policy to June 27, 1923, and writing it at age 49, for annual premium of $ 187.60. Landau v. New York L. Ins. Co., 203 S.W. 1003, 199 Mo.App. 544; Langan v. U.S. Life Ins. Co., 130 S.W.2d 479, 344 Mo. 182; Great Southern Ins. Co. v. Peddy, 151 S.W.2d 346; Howard v. Aetna L. Ins. Co., 145 S.W.2d 113, 346 Mo. 1062. (5) The surrender charge taken from the reserve at the time the policy lapsed was $ 1.75. Gooch v. Metropolitan L. Ins. Co., 61 S.W.2d 704, 333 Mo. 191; Ash-Grove Lime & Portland Cement Co. v. Southern Surety Co., 39 S.W.2d 434, 225 Mo.App. 712. (6) The court erred in giving defendant's demurrer offered at the close of all the evidence directing a judgment for the defendant. See authorities cited under Points (1), (2), (3), (4) and (5), supra.

Morrison, Nugent, Berger, Byers & Johns, E. R. Morrison and W. B. Cozad for respondent.

(1) No excess interest charged in policy loan. Caneer v. Kent, 342 Mo. 878, 119 S.W.2d 214; Priest v. Oehler, 328 Mo. 590, 41 S.W.2d 783; McCormick v. Transit Ry. Co., 154 Mo. 191, 55 S.W. 252; Quilty v. New York Life Ins. Co., 153 Kan. 129, 109 P.2d 215. (2) The insurance would not extend to date of insured's death even if date of policy is construed as being July 13, 16 or 19. (3) The date June 27 specified in the policy is binding upon the parties. (a) The date of June 27 was expressly agreed to by insured in order to obtain the benefit of rate applicable to age 49. Prange v. International Life Ins. Co., 329 Mo. 651, 46 S.W.2d 523; Howard v. Aetna Life Ins. Co., 145 S.W.2d 113; Tabler v. General American Life Ins. Co., 342 Mo. 726, 117 S.W.2d 278; Winters v. Reserve Loan Life Ins. Co., 221 Mo.App. 519, 290 S.W. 109; Hussey v. Ohio Natl. Life Ins. Co., 119 S.W.2d 455; Johnson v. Mut. Benefit Life Ins. Co., 143 F. 950; Shira v. New York Life Ins. Co., 90 F.2d 953; Halsey v. American Central Life Ins. Co., 258 Mo. 659, 167 S.W. 951, is distinguishable. (b) Any possible ambiguity is eliminated by the practical construction placed upon the policy by the parties. Scotten v. Met. Life Ins. Co., 336 Mo. 724, 81 S.W.2d 313; Dougherty v. Mutual Life Ins. Co., 44 S.W.2d 206; Evans v. Equitable Life Assur. Society, 109 S.W.2d 380. (4) The cash surrender value fixed by the table of guaranteed values contained in the policy is controlling. Legrand v. Central States Life Ins. Co., 132 S.W.2d 1105; Horton v. Atlantic Life Ins. Co., 187 S.C. 155, 197 S.E. 512, 116 A. L. R. 788; Felderman v. Inter-Southern Life Ins. Co., 325 Pa. 389, 190 A. 723; Atlantic Life Ins. Co. v. Pharr, 59 F.2d 1024; Moss v. Aetna Life Ins. Co., 73 F.2d 339; Bostick v. Life Ins. Co. of Virginia, 93 F.2d 557. (5) In determining the cash surrender value, it is immaterial whether the reserve be computed on the net level premium basis or modified preliminary term basis because the company in any event was entitled to deduct a surrender charge of $ 125. (6) In any event the reserve should be computed under the modified preliminary term plan. Legrand v. Central States Life Ins. Co., 132 S.W.2d 1105; Prange v. International Life Ins. Co. of St. Louis, 329 Mo. 651, 46 S.W.2d 523; Tabler v. General American Life Ins. Co., 342 Mo. 726, 117 S.W.2d 278; Hussey v. Ohio Natl. Life Ins. Co., 119 S.W.2d 455; Vail v. Midland Life Ins. Co., 108 S.W.2d 147; Bankers Life Ins. Co. v. Howland, 73 Vt. 1, 48 A. 435; Felderman v. Inter-Southern Life Ins. Co., 325 Pa. 389, 190 A. 723; Atlantic Life Ins. Co. v. Pharr, 59 F.2d 1024. (7) The contract of insurance is in all respects legal and binding upon insured. Prange v. International Life Ins. Co. of St. Louis, 329 Mo. 651, 46 S.W.2d 523; Gooch v. Met. Life Ins. Co., 333 Mo. 191, 61 S.W.2d 704; Howard v. Aetna Life Ins. Co., 145 S.W.2d 113.

OPINION

Dalton, C.

This is an action upon an insurance contract. Defendant alleged the policy had lapsed for non-payment of premiums, and that the extended insurance thereafter provided had terminated prior to the date of insured's death. The cause was tried to the court, without aid of a jury, and judgment was entered for defendant. Plaintiff has appealed. We have jurisdiction because the amount sued for exceeds $ 7500.

The policy, dated June 27, 1923, is designated a "Non-participating Whole Life (Policy) Endowment at Age 85, Premiums payable until age 85," and insured the life of James McQueeny for $ 5000. Appellant was named as beneficiary. The insured died August 24, 1933, and this suit was instituted February 19, 1938. The facts are not in dispute and each party contends it is entitled to judgment upon the conceded facts. Nine and one-quarter annual premiums were paid on the policy and it then lapsed for non-payment of premiums.

Respondent claims the policy lapsed September 27, 1932. Respondent admits that the policy then had a cash surrender value of $ 1003, but claims that, after deducting a net indebtedness of $ 898.83 (evidenced by a note for $ 941.18, dated August 1 1932, from which unearned interest to June 27, 1933, was deducted), the policy actually had a net value of only $ 104.17 available for term insurance. This amount was not sufficient to carry the policy as term insurance to the date of insured's death. It is conceded that a net value of $ 108.73 would have been required to keep...