Mid-Continent Life Ins. Co. v. Skye

• Decision Date: 20 October 1925
• Docket Number: 15672.
• Citation: 240 P. 630,113 Okla. 184,1925 OK 847
• Parties: MID-CONTINENT LIFE INS. CO. v. SKYE.
• Court: Oklahoma Supreme Court

240 P. 630

113 Okla. 184, 1925 OK 847

MID-CONTINENT LIFE INS. CO. v. SKYE.

No. 15672.

Supreme Court of Oklahoma

October 20, 1925

Syllabus by the Court.

The court cannot make a contract between the parties. Its duty is to properly construe the language contained in the contract and to give such language the force and effect as the same is commonly understood.

Where the terms of an insurance policy are free from ambiguities and can be clearly understood from the language therein employed, and there are no conflicting clauses in such policy, the court must then enforce the terms of such policy as it would any other contract.

Additional Syllabus by Editorial Staff.

In insurance policy, provision that, commencing with anniversary of policy next succeeding receipt of proof of disability company would on each anniversary waive payment of premium for ensuing year, term "anniversary" means yearly recurring date of policy, and benefit of waiver of premiums by reason of receipt of proof of permanent disability is postponed until next anniversary of policy succeeding receipt of such proof.

Appeal from District Court, Ottawa County; J. J. Smith, Judge.

Action by Nancy Skye against the Mid-Continent Life Insurance Company. Judgment for plaintiff, and defendant appeals. Reversed and remanded, with directions.

Geo. B Rittenhouse, F. A. Rittenhouse, P. T. McVay and John F. Webster, all of Oklahoma City, for plaintiff in error.

L. A. Wetzel and E. C. Fitzgerald, both of Miami, for defendant in error.

LESTER J.

The parties to this action will be referred to as they appeared in the court below.

The plaintiff brought suit on an insurance policy. Defendant demurred to plaintiff's petition. The demurrer was overruled, and the defendant excepted to the ruling of the court, and thereafter filed its answer. A jury was impaneled to determine the issues, but thereafter the plaintiff and defendant entered into an agreed statement of facts, and submitted the same to the court, and the jury was excused. The court rendered judgment thereupon in favor of the plaintiff. Motion for new trial was overruled, and the defendant prosecutes its appeal to this court to reverse the judgment of the district court.

The following is the agreed state of facts as submitted to the trial court:

"It is hereby stipulated and agreed by and between the parties hereto that it is admitted that the policy of life insurance No. 17010 was issued to William Skye upon his life, payable to Nancy Skye, his widow, upon the date which appears upon the policy. It is further admitted that the first annual premium was paid upon the policy, and that the second annual premium was not paid. It is further admitted that William Skye became totally disabled upon the 28th day of January, 1922, and that he continued to be totally disabled up to the date of his death, which occurred upon the 27th day of February, 1923; that proof of permanent disability has been made, and an offer was made to make proof of death; and that the defendant waived same by denying liability, and that proof of permanent disability was made in due time; and it is further stipulated that the policy will be admitted in evidence, and marked Plaintiff's Exhibit A. It is further agreed that the court may render judgment upon this stipulation, and that a jury is hereby excused and waived."

From these agreed facts and the admission in the evidence of the insurance policy it is necessary to examine the policy in order to determine the rights of the parties under the admitted facts and terms of the policy. As will be observed, the rights of the plaintiff to recover is predicated upon the terms of the policy relating to permanent disability of the insured prior to his death; he not having paid the second annual premium. The policy was issued to the insured, and one annual premium had been paid on the same. This policy was issued to the insured on the 12th day of March, 1921. He was permanently disabled on the 28th day of January, 1922. He died on the 27th day of February, 1923. It was agreed that proof of permanent disability had been made in due time. The terms of the policy relating to the issues involved are as follows:

"After one full annual premium shall have been paid upon this policy and before a default in the payment of any subsequent premium, if the insured shall furnish the company with due proof that he has since such payment and before having attained the age of sixty years become wholly disabled by bodily injuries or disease, not occasioned by military or naval service or participation in aeronautic or submarine expeditions or operations, and will be, presumably, thereby permanently, continuously, and wholly prevented from engaging in any occupation or employment whatever for remuneration or

profit, and that such disability has then existed for not less than sixty days, then

I. Waiver...