Metropolitan Life Ins. Co. v. Carroll, Admr.

• Decision Date: 09 June 1925
• Citation: 209 Ky. 522
• Parties: Metropolitan Life Insurance Company v. Carroll, Administrator of Alex. W. McLaren.
• Court: United States State Supreme Court — District of Kentucky

209 Ky. 522

Metropolitan Life Insurance Company v. Carroll, Administrator of Alex. W. McLaren.

Court of Appeals of Kentucky.

Decided June 9, 1925.

Insurance — Time Held Not Essence in Furnishing Proof of Insured's Total Disability, and Company Liable, where Liability Denied Before Reasonable Time for Furnishing Proof had Elapsed. — Under life insurance policy, providing that premiums will be paid by company if insured is wholly disabled after policy has been in force one year, and before default in payment of any subsequent premium, if company received due proof of insured's disability, and also providing for grace of 31 days for payment of every premium after first, held, that time was not of essence of contract as to furnishing proof of disability, and such proof could be furnished within a reasonable time, and where insured became wholly disabled within period of grace after second premium became due, and died within three weeks thereafter, after which company denied liability, a reasonable time for furnishing proof had not then elapsed, and company was liable under such contract.

Appeal from Kenton Circuit Court.

S.D. ROUSE and W.A. PRICE for appellant.

C.B. SHIMER for appellee.

OPINION OF THE COURT BY COMMISSIONER HOBSON.

Affirming.

The Metropolitan Life Insurance Company issued to Alex W. McLaren on June 27, 1922, a policy insuring his life in the sum of five hundred ($500.00) dollars, in consideration of the payment of an annual premium of $32.81. He made the first payment when the policy was issued. The next payment fell due June 27, 1923. The policy contained the following provisions:

"A grace of thirty-one days, without interest charge, shall be granted for the payment of every premium after the first during which period the insurance shall continue in force.

"If, after this policy has been in force one full year, and before default in the payment of any subsequent premium, the company receives due proof that the insured, before attaining the age of sixty years, has become wholly and permanently disabled by bodily injury or disease, so that he is and will be permanently, continuously and wholly prevented thereby from performing any work for compensation or profit, the company will waive payment of each premium as it thereafter becomes due during the insured's said disability. Any premium so waived shall not be deducted from the sum payable hereunder, and the values provided for under the provision `Options on Surrender or Lapse' shall be the same as if such premium had been paid in cash.

"This provision is granted without additional cost to the insured."

On July 13, 1923, the insured became wholly and permanently disabled by disease so that he was permanently, continuously and wholly prevented from performing any work for compensation or profit. He died in this condition on July 30, 1923; no proof of his condition was furnished the company before his death, and after he died the company denied liability upon the policy. This action was brought to recover upon it and judgment having been rendered in favor of the plaintiff the defendant appeals.

In Southern Life Insurance Co. v. Hazard, 148 Ky. 465, the policy was issued on September 27, 1919, the premium for one year was then paid. The next premium was due on September 27, 1910. On June 25, 1910, Hazard became wholly disabled by bodily disease and this disability continued until the time of his death on May 18, 1911. On December 21, 1910, he furnished the insurance company with the required proof, showing his total, permanent disability. The policy in that case provided that premiums would be paid by the company if the insured was wholly disabled after one full annual payment had been made and before a default in the payment of any subsequent...